US stock futures slipped in Tuesday trading on September 15, as S&P 500 and Nasdaq futures dropped 0.3% and 0.4% respectively. Investors grew cautious ahead of the Federal Reserve’s anticipated interest-rate decision, while the benchmark 10-year Treasury yield climbed to 5.041%, reaching its highest level since 2007 amid rising oil prices and inflation concerns.
Financial markets faced renewed downward pressure on Tuesday, September 15, as key stock index futures retreated across the board. Futures tied to the Dow Jones Industrial Average dropped 229 points, or 0.4%, following a previous session where all three key indices closed in the red.
The sell-off was compounded by a sharp rise in Treasury yields as investors demanded higher compensation amid growing inflation concerns and expanding government deficits. This surge in yields, alongside elevated crude oil prices, fueled market expectations for the first interest-rate hike in more than three years.
Technology Sector Pullback and Premarket Declines
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Monday’s trading session suffered a heavy blow after a renewed sell-off hit chip and AI-related stocks. Although there remains little clarity on how such a slowdown might unfold, the latest declines added to broader market gloom as above-target inflation and fears of higher borrowing costs clouded the equity outlook.
Pre-market trading on Tuesday reflected continuing caution across the technology sector. Major players such as Alphabet and Microsoft traded down around 1% each.
Escalating Energy Prices and Middle East Supply Pressures
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Outside the domestic markets, traders monitored geopolitical developments closely. The Houthis reportedly seized Perim Island in the Bab el-Mandeb Strait, adding further pressure to Saudi oil exports and global shipping routes.
These supply disruptions drove international energy benchmarks higher. Brent crude rose $2.75 to $108.43 a barrel—a striking increase compared to around $72 a barrel before the start of the war in Iran in late February. US West Texas Intermediate crude also gained $2.81, reaching $104.20 a barrel. The supply concerns also had regional diplomatic impacts; Oman reportedly postponed a meeting in Muscat on Monday with Iran and other regional countries intended to discuss the Strait of Hormuz.
Markets Price in Almost Certain Federal Reserve Rate Hike
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The compounding pressures of rising yields and surging crude prices elevated the stakes for the US Federal Reserve’s upcoming policy decision. Higher tariffs and the ongoing conflict in the Middle East have added further to these price pressures.
Traders priced in roughly a 90% chance of a quarter-percentage-point increase on Wednesday, with some market pricing putting the probability even higher, driven by the latest consumer inflation readings and the ongoing rally in crude oil prices.
