- US stock futures were mixed before Tuesday's open amid rising oil prices and Fed rate hike concerns
- Dow Jones fell 500 points near 33,000, S&P 500 slightly down, Nasdaq remained flat by 5 am ET
- Oil prices neared $100 per barrel due to US-Iran tensions and China’s increased buying demand
US stock futures remained mixed before the opening bell on Tuesday, September 8 amid soaring oil prices and possibility of September interest-rate hike by the Federal Reserve.
Dow Jones declined 500 points near 53,000, S&P 500 stayed marginally down at 7,708.5, while Nasdaq was flat at 29,595.2 by 5 am ET or 2:30 pm IST.
Stock futures were down on the backdrop of several global cues, including US Canada tensions and surge in oil prices.
Here are three reasons why stock futures are trading lower today -
Oil Nears $100
Oil prices traded near $100 a barrel as traders assessed the possibility of a framework led by Iran-Oman to manage shipping through the Strait of Hormuz against renewed buying by China and continued risks to regional energy supplies.
Brent crude has surged 1.6% over the past two sessions, while West Texas Intermediate was trading above $92. Brent touched above $98 on Monday as escalating US-Iran tensions pushed the benchmark to its highest level in nearly six weeks.
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US-Canada Trade Tensions
Stock futures are likely to face pressure amid escalating tensions between US and Canada, with the latter likely to impose tariffs of 15% to 50% on hundreds of American products. Except a last-minute reprieve, Carney's government will increase the import tax on many US steel items to 50% from 25% and apply tariffs to a range of consumer items - motorcycles, cosmetics, cheese and more. The measure will hit US exporters particularly hard in states such as Michigan and Ohio that do a lot business with Canada and host heated races in November's midterm elections.
Fed Rate Hike Bet
Investors will also focus on Federal Reserve's FOMC meeting next week, officials have indicated that Friday's inflation datawill be key for rates. While the bond market sees a 60% chance of a hike next week, such a move isn't fully priced in until December, according to Bloomerg data.
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