US equity futures moved higher on Friday as crude oil prices pulled back below $100 a barrel and investors assessed August consumer inflation figures ahead of next week’s Federal Reserve policy meeting.
US crude futures declined nearly 3% after gaining more than 12% since the start of the week.
The decline followed a Financial Times report that Iran and Oman are expected to meet Gulf states next week to discuss reopening shipping through the Strait of Hormuz.
The move in futures followed several sessions of losses on Wall Street, with the Dow Jones Industrial Average and S&P 500 ending Thursday at their lowest closing levels in more than a month.
August CPI Rises 0.4% as Core Inflation Exceeds Forecast
US futures remained higher following the Labor Department’s latest consumer price report.
The consumer price index increased 0.4% month on month in August after rising 0.1% in July, matching economists’ forecasts.
Excluding food and energy, core consumer prices increased 0.3%, compared with a 0.2% rise in July and expectations for another 0.2% increase.
Headline CPI was unchanged at 3.4% on an annual basis. Annual core inflation eased to 2.4% from 2.5% in July, in line with expectations.
The inflation report comes ahead of the Federal Reserve’s monetary policy meeting next week.
US Equities Extend Losses in Thursday Session
Wall Street’s major indices declined on Thursday as crude oil prices and US Treasury yields moved higher.
The Dow fell 316.56 points, or 0.6%, to 52,064.10, while the Nasdaq Composite lost 171.62 points, or 0.7%, to close at 26,081.72. The S&P 500 declined 44.66 points, or 0.6%, to 7,591.70.
The session left the Dow and S&P 500 at their lowest closing levels in more than a month.
US crude futures moved above $100 a barrel for the first time since May amid concerns over how long the conflict between the US and Iran could continue.
The source cited a Wall Street Journal report saying US officials indicated that senior White House advisers had privately raised with President Donald Trump the possibility that the conflict could last through the remainder of his term.
Trump said Wednesday that he expected the conflict to end immediately after the midterm elections.
Treasury Yields Reach Nearly Three-Year High
The increase in crude prices was accompanied by higher Treasury yields, with the benchmark US 10-year yield reaching its highest level in almost three years, according to the source.
Investors were assessing the implications of higher oil prices and bond yields for the interest-rate outlook ahead of next week’s Federal Reserve meeting.
Several sectors recorded losses during Thursday’s session. The NYSE Arca Gold Bugs Index declined 3%, while the Philadelphia Semiconductor Index fell 2.7%.
The NYSE Arca Computer Hardware Index dropped 2.3%, with housing, airline and biotechnology stocks also moving lower.
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