Wall St set for lower open as oil gains on Mideast uncertainty, eyes on Trump-Xi talks
SPY•U.S. stock futures fell as oil prices rose above $100 a barrel amid Middle East tensions and investors looked ahead to Trump-Xi talks. Dow, S&P 500 and Nasdaq 100 futures were down 0.27%, 0.51% and 0.98%, respectively.
1. Futures point lower
Wall Street was set to open lower on Thursday as Middle East tensions lifted oil prices and Treasury yields, while investors awaited a summit between Presidents Donald Trump and Xi Jinping. Brent crude rose above $100 a barrel after exchanges between U.S. and Iranian leaders at the United Nations General Assembly; a potential ban on U.S. diesel exports also weighed on sentiment.
2. Rates and technology
At 8:48 a.m. ET, Dow E-minis were down 0.27%, S&P 500 E-minis 0.51% and Nasdaq 100 E-minis 0.98%. The 30-year Treasury yield reached its highest since 2004, and investors priced in a 71% chance of at least a quarter-point Federal Reserve rate increase next month, up from about 50% a day earlier. New York Fed President John Williams said another rate increase this year remained reasonable.
3. Company moves
Airline, cruise and chip shares declined before the bell. MGM Resorts fell 10% after Barry Diller's People Inc withdrew its buyout proposal, while Darden Restaurants dropped 2% after missing first-quarter sales and profit estimates. Oracle lost 4.2% after a report said it sent a force majeure notice to a New Mexico data center.
