US Stock Futures Drop Ahead of Fed Meeting as Oil Prices and Treasury Yields Rise
US stock futures fell ahead of the Federal Reserve's two-day monetary policy meeting, with investors also watching rising oil prices and higher Treasury yields. As of early Tuesday morning ET, Dow Jones Industrial Average futures were down by about 0.5%, S&P 500 futures dropped nearly 0.4%, and Nasdaq-100 futures declined around 0.3%. The Philadelphia Semiconductor Index saw its largest daily drop since July as semiconductor shares weakened. The yield on the benchmark 10-year US Treasury rose above 5% for the first time in over three years, driven by concerns about inflation from higher energy prices. Deutsche Bank analysts noted that September has been a challenging month for asset performance and highlighted ongoing market struggles with both bonds and equities. Markets are currently pricing in an approximately 92% chance of a 0.25 percentage point rate hike at the Fed's upcoming meeting, which would raise rates to between 3.75% and 4%. Oil prices continued rising amid supply concerns from Middle East tensions, including ongoing issues with Iran-aligned Houthi strikes in Yemen affecting key shipping routes like the Bab el-Mandeb Strait. Analysts estimate that further disruptions could impact up to 5% of global oil supplies.
Topics: federal_reserve_meeting oil_prices stock_indices treasury_yields