TLDR
- Dow futures dropped around 400 points as U.S.-Iran tensions pushed oil prices higher
- Brent crude climbed toward $100 a barrel, stoking inflation fears
- Amgen shares fell 5% after a rival drug trial failed, dragging the Dow lower
- The Fed rate hike fear is back, with the 10-year Treasury yield rising to 4.81%
- Investors are watching Oracle earnings and Friday’s CPI report closely
U.S. stock futures fell on Tuesday as rising oil prices brought inflation fears back to the surface. Dow futures dropped around 400 points, or roughly 0.8%. S&P 500 futures slipped 0.2%, while Nasdaq 100 futures were close to flat.
The moves come after a quiet Monday, when markets were closed for Labor Day. Futures traded in a limited window, but the cash market did not open.
Stocks had already taken a hit on Friday after a strong jobs report raised the odds of a Federal Reserve rate hike later this month. Tuesday’s premarket drop extends that pressure.
The main driver was oil. Brent crude futures climbed around 2.3% to near $99.20 a barrel. That puts it close to $100 for the first time since July.
The rise came after the U.S. and Iran exchanged strikes over the weekend. Iran also said it was near a deal with Oman to manage traffic through the Strait of Hormuz, a key route for global oil shipments.
WTI crude, the U.S. benchmark, was approaching $93 a barrel.
“In a low energy 24 hours the Middle East story has rumbled on as concerns about fresh U.S.-Iran hostilities pushed oil prices higher still,” said Deutsche Bank analyst Jim Reid.
Amgen Drop Adds to Dow Pressure
Amgen shares fell around 5% in premarket trading. The drug maker is one of the 30 stocks in the Dow Jones Industrial Average, so its drop had an outsized effect on the index.
The sell-off came after rival pharma firm Novartis said a late-stage trial of its experimental heart drug pelacarsen did not meet its primary endpoint. The news hit Amgen because of its exposure to the cardiovascular drug space.
Rising oil prices also pushed bond yields higher. The 10-year Treasury yield climbed 2 basis points to 4.81% in early trading, as investors priced in a higher chance of more Fed rate hikes.
🚨WARNING: Oil is closing in on $100 AGAIN.
Crude has surged to its highest level in nearly 3 months, with Brent now around $97/barrel.
U.S. inflation is already at 3.4% and gasoline prices are up 24.6% YoY.
Now crude is closing in on $100, while Gulf oil shipments remain… pic.twitter.com/Rdx3rEayuK
— Coin Bureau (@coinbureau) September 8, 2026
Investors are watching two key events this week. Oracle reports earnings later this week, and GameStop reports on Tuesday. Both companies are closely watched by traders.
On Friday, the Consumer Price Index report will show whether inflation is cooling toward the Fed’s 2% target. A hotter-than-expected reading could add more pressure to stocks.
The three major indexes fell on Friday after the jobs report came in stronger than expected, showing solid job gains in August.
As of Tuesday morning, markets remain on edge, with oil, inflation data, and Fed expectations all in focus.
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