U.S. equity futures moved lower on Tuesday as investors weighed geopolitical risk, firm Treasury yields and uncertainty over the Federal Reserve’s rate path. The cautious tone followed a strong August for major indices, but markets faced fresh pressure entering a month that has often challenged equities.
At 4:17 a.m. (Bangkok Time), futures tied to the Dow Jones Industrial Average were down 0.53%. S&P 500 futures lost 0.57%, while Nasdaq-100 contracts declined 1.03%.
The pullback came after solid monthly gains. In August, the S&P 500 added 2.6%, the Nasdaq Composite climbed nearly 4%, and the Dow Jones Industrial Average rose 1.3%, marking its fifth consecutive monthly increase.
Despite double-digit gains for stocks so far this year and improving profit forecasts, investors were contending with several risks. Oil markets remained under pressure after the U.S. and Iran returned to open conflict on Sunday. Brent crude contract, the international benchmark, climbed 1.88% to $92.19 a barrel, while U.S. West Texas Intermediate crude futures jumped 2.36% to $87.78.
Bond markets also remained a focal point. The 10-year Treasury yield climbed to 4.75%, keeping attention on borrowing costs and the possibility that the Fed may resume rate increases.
Economic releases were set to shape trading through the week. Tuesday’s Job Openings and Labor Turnover Survey (JOLTS) will provide updated readings on hiring demand and worker departures before Friday’s monthly employment report. Manufacturing data from S&P Global and the Institute for Supply Management are also due.
The second-quarter earnings season has largely wound down, though Dell’s results remain on the calendar. Its report is expected to offer a view into corporate spending on technology and cloud services.
