U.S. stock futures fell on Monday as a renewed rise in oil prices and Treasury yields increased pressure on technology shares, with investors also preparing for a week of key inflation and labor-market data that could influence the Federal Reserve’s next interest-rate decision.
Futures tied to the S&P 500 fell about 0.5%, while Nasdaq 100 futures dropped roughly 1%. Dow Jones Industrial Average futures declined around 190 points in early trading.
Oil Rebound Adds to Inflation Concerns
Oil prices climbed sharply Monday as fading expectations for progress in U.S.-Iran negotiations brought Middle East supply risks back into focus.
West Texas Intermediate crude traded above $96 a barrel, rising more than 4%. Higher energy prices have renewed concerns that inflation could remain elevated and increase pressure on interest rates.
Treasury Yields Continue to Rise
Pressure was also building in the bond market, with Treasury yields extending their recent climb to multi-year highs.
Rising energy costs are adding to inflation concerns at a time when investors are already reassessing the outlook for Federal Reserve policy. Higher yields can be particularly challenging for technology and other growth stocks because they increase financing costs and affect the valuation of expected future earnings.
Technology and Chip Stocks Retreat
Technology shares were broadly lower in premarket trading.
Nvidia fell around 0.4% despite unveiling a new software platform designed to allow AI developers to establish safeguards for agents.
Apple declined 0.2%, Alphabet fell 1%, Microsoft lost 0.3%, Amazon dropped 0.8%, Broadcom declined 1.2%, Meta fell about 3% and Tesla was down 0.8%.
Semiconductor stocks faced additional pressure, with Micron Technology down around 2.2%, AMD falling 2.7% and Intel declining 3.3%.
PCE Inflation and Jobs Report in Focus
Investors are now turning their attention to major U.S. economic releases this week, including the PCE inflation index and the employment report.
The data could provide further evidence on inflation, consumer prices and the strength of the labor market as investors assess the outlook for U.S. monetary policy.
With energy prices rising and Treasury yields at multi-year highs, the combination of inflation data, employment figures and developments in the Middle East will remain important variables for financial markets this week.
