US Stock Futures Drop as Investors Weigh Fed Rate Hike Uncertainty

US stock market futures dipped on Monday as investors reassessed recent gains in technology shares, focusing on Treasury yields, oil prices, and employment data to gauge the Federal Reserve's next move. Dow Jones futures fell about 0.2%, while S&P 500 and Nasdaq futures also slipped. The weaker-than-expected September jobs report had earlier lowered expectations of an October rate hike, but high bond yields and oil prices near $100 per barrel continued to pose challenges for equities.

Technology stocks, which had driven recent market highs, showed signs of cooling. The Nasdaq, in particular, faced pressure as investors took profits following its record peak. Intel dropped over 4% in premarket trading, while Micron Technology declined about 0.3%. Nvidia, however, edged higher after reaching a new high on Friday, reflecting its strong influence on the broader tech and AI sectors.

The 10-year Treasury yield remained near 5.28%, near multi-year highs, driven by concerns over US government finances and energy costs. Meanwhile, Brent crude oil hovered around $101.39 a barrel, with supply disruptions from the Middle East conflict contributing to elevated prices. These factors could complicate the Fed's efforts to manage inflation and support economic growth.

Investors will be watching key indicators, including opening levels for the Dow Jones, S&P 500, and Nasdaq, as well as movements in Treasury yields and oil prices. The market's near-term outlook remains mixed, with softer jobs data providing some relief from rate hike fears, but high yields and oil prices continuing to weigh on sentiment.