S&P futures exhibited a downward trend early on Wednesday following a decline in the prior session, coinciding with the ongoing rise in oil prices. Futures for the Dow Jones Industrial Average declined by 0.24% at 5:47 am. S&P 500 futures increased by less than 0.1%, whereas Nasdaq 100 futures declined by 0.14%. In Europe, the Stoxx 600 experienced a decline of 0.69%, while the U.K.’s FTSE 100 fell by 0.32% and Germany’s DAX decreased by 0.68%. The French CAC 40 experienced a decline of 0.95%, while the Italian FTSE MIB fell by 1.27%. In Asia, Japan’s Nikkei 225 concluded the trading session down by 0.19%, whereas South Korea’s Kospi experienced an increase of 1.40%.
Australia’s benchmark index experienced a decline of 0.11%. Mainland China’s CSI 300 concluded the trading session with an increase of 0.30%. Oil prices increased amid rising tensions between the U.S. and Iran, heightening concerns regarding potential disruptions to energy supplies in the Middle East. Futures for Brent crude, the international benchmark, increased by over 2% to surpass $100 a barrel for the first time since July. Oil’s after-hours increase comes after a session gain in crude that exerted downward pressure on the three major averages during their initial session of a holiday-shortened trading week.
The stock market remained inactive on Monday in observance of the Labour Day holiday. The Dow dropped 1.2% on Tuesday, marking its worst day in almost three weeks. The S&P 500 and Nasdaq Composite experienced declines of 0.6% and 0.3%, respectively. The 10-year U.S. Treasury yield briefly climbed above the closely watched 4.8% level on Tuesday as rising oil prices contributed to concerns regarding inflation. The movement in yields exerted additional pressure on stocks during the session.
It’s “a little bit of a speed bump,” said Kara Murphy. “There’s a little bit less to focus on with the earnings front, so I think the market has sort of shifted its attention now to the risk side.” There are no significant economic data releases or corporate earnings reports scheduled for Wednesday. Later in the week, traders will observe readings on inflation for indications of how the Federal Reserve might adjust interest rates.
