U.S. equity futures showed little direction early Wednesday following the previous session’s losses, with higher oil prices keeping inflation and interest rates in focus.
At 4:31 p.m. (Bangkok time), Nasdaq 100 futures edged 0.01% higher, while contracts tracking the Dow and S&P 500 slid 0.17% and 0.02%, respectively.
The prospect of prolonged wartime disruption to energy supplies through the Strait of Hormuz has strengthened expectations for tighter monetary policy. CME Group data put the probability of a quarter-percentage-point Federal Reserve rate increase this month at 60%, a modest rise from the previous day. The central bank will meet next week.
Inflation worries linked to the oil rally also affected the Treasury market on Tuesday. The yield on the 10-year U.S. note temporarily exceeded 4.8%, a level closely followed by investors. That upward move added pressure to equities during the session.
Crude’s latest advance followed an intensification of U.S.-Iran fighting, including U.S. strikes on five Iranian oil tankers. International benchmark Brent futures reached $100.42 a barrel on Wednesday, compared with $94.92 for U.S. benchmark West Texas Intermediate. Oil went above $100 for the first time in more than a month.
On the corporate calendar, Apple’s annual iPhone introduction takes place Wednesday, with John Ternus making his first appearance at the launch event as chief executive.
Wednesday’s schedule contains no major economic releases or corporate earnings reports. Attention later in the week will turn to inflation figures, which traders will examine for indications of the Fed’s next interest-rate decision.
