Dow Jones Industrial Average futures fell 0.64% to 52,496.5 points on September 9, the lowest level since July 31, extending a September selloff. Rising oil prices and Treasury yields fanned bets on a Federal Reserve rate hike after a stronger-than-expected jobs report.
Renewed bets on a Federal Reserve rate hike dragged Dow Jones Industrial Average futures to 52,496.5 points, down 0.64 percent and the weakest level since July 31, as oil gains and higher Treasury yields compounded the pressure on equities.
The slide extended a September pullback after August payrolls surged to 162,000, nearly three times the consensus estimate, lifting the odds of a Fed move this month to 68.2 percent, according to market pricing. Fed Chair Kevin Warsh has kept the central bank's 2 percent inflation target in focus, telling the Jackson Hole gathering that further tightening remains on the table if price pressures persist.
Crude climbed to a six-week high as renewed US strikes on Iranian targets raised supply risks, while a global bond selloff pushed Treasury yields higher. The move was not confined to the Dow: the S&P 500 and Nasdaq Composite have both come under pressure this month, with the Dow closing down 0.71 percent at 53,179.77 in an earlier session as energy costs revived inflation concerns. Software and consumer discretionary names have lagged, while energy shares have outperformed on the oil spike.
The futures drop marks a fresh leg in a rotation out of equities that began when the jobs report landed. Traders had scaled back hike expectations after Fed Governor Christopher Waller said he could support holding rates steady if inflation cools, only to reverse course when the payrolls print came in hot. That whipsaw has left the Dow roughly 3 percent below the record high it touched in late August, when easing oil prices and strong tech earnings lifted sentiment.
Investors now turn to consumer price data due this week for the clearest signal on the Fed's September decision. A hot reading would reinforce the case for a hike and deepen the pullback in equities, which have retreated from record levels as the AI-driven rally cooled and Middle East tensions kept a floor under energy costs.
This article is for informational purposes only and does not constitute investment advice.
