TLDR
- Dow futures fell around 392 points (0.7%), with S&P 500 and Nasdaq 100 futures also lower in premarket trading
- Brent crude oil topped $100 a barrel for the first time in over a month after the U.S. struck five Iranian oil tankers
- Rising oil prices are stoking inflation fears ahead of Friday’s consumer price index report
- Traders now see a 60% chance the Federal Reserve will raise interest rates at its next meeting
- Apple is expected to unveil a foldable iPhone at its annual product event on Wednesday
U.S. stock futures dropped Wednesday morning as fighting between the U.S. and Iran pushed oil prices above $100 a barrel for the first time since July.
Dow Jones Industrial Average futures fell around 392 points, or 0.7%. S&P 500 futures were down 0.5% and Nasdaq 100 futures dropped 0.7%.
The declines follow a rough Tuesday session, when the Dow lost over 600 points.
Brent crude oil, the global benchmark, briefly topped $100 per barrel in early trading. U.S. benchmark WTI crude stood at around $95 per barrel.
The jump in oil prices came after the Wall Street Journal reported that the U.S. military had destroyed five Iranian oil tankers. The strikes are part of ongoing fighting in the Strait of Hormuz.
BREAKING: Brent crude oil prices surge above $100 per barrel after the US strikes Iranian oil tankers near the Strait of Hormuz.
This puts oil prices up +43% since July 2nd.
$100 oil is officially back. pic.twitter.com/AFij8GsKd2
— The Kobeissi Letter (@KobeissiLetter) September 9, 2026
Energy supply concerns are now feeding directly into inflation worries on Wall Street.
“Markets seem to be treading water this week as increases in energy prices dampen risk appetite,” said Deutsche Bank analyst Jim Reid.
The 10-year Treasury yield rose to 4.81% in early trading, a sign that borrowing costs are moving higher alongside energy prices.
Fed Rate Hike Odds Rise as Inflation Concerns Mount
Traders are now pricing in a 60% chance the Federal Reserve raises interest rates by 25 basis points at its next meeting, up slightly from the day before, according to CME Group data.
The Federal Reserve’s next decision is being watched closely. Friday’s consumer price index report for August will be a key input for that decision.
Inflation is the main driver of market anxiety right now, with fewer corporate earnings reports to give investors other things to focus on.
Chewy reported quarterly results in line with expectations on Wednesday. American Eagle Outfitters is set to report after the bell, offering a window into consumer spending trends.
Apple is also in the spotlight Wednesday. Chief Executive John Ternus is expected to take the stage at the company’s annual iPhone launch event, with a foldable iPhone expected to be unveiled.
It is the first time Ternus will lead the event as CEO.
While the tech story is grabbing attention, energy prices and inflation remain the main focus for markets heading into the rest of the week.
The situation in the Strait of Hormuz continues to develop, and traders will be watching for any further military escalation that could push oil higher.
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