US stock futures steady as oil climbs and yields rise
US stock futures steadied after a sour start to the week, with renewed Middle East conflict lifting oil prices. Higher energy costs increased inflation concerns, supporting expectations for a September Fed rate hike and sending Treasury yields higher.
US stock futures steadied on Tuesday after the major averages started the week on a sour note, as investors contended with rallying oil prices triggered by a renewed conflict in the Middle East.
Higher energy costs stoked inflation concerns and strengthened expectations for a Federal Reserve interest rate hike in September, sending Treasury yields higher.
In regular trading on Monday, the Dow fell 0.7%, while the S&P 500 and Nasdaq Composite declined 0.33% and 0.12%, respectively.
Nine of the 11 S&P sectors finished lower, led to the downside by communication services, utilities and industrials.
Wall Street is now entering what has historically been a challenging month for stocks after posting modest gains in August.
Investors will also turn their attention to the latest manufacturing and services activity data on Tuesday, as well as the August jobs report on Friday amid a busy economic calendar.