Stock futures were largely flat on Wednesday, following a downbeat session as oil prices continued to climb, with Brent crude nearing $100 a barrel amid escalating U.S.-Iran tensions. European markets opened lower, reflecting the broader market sentiment driven by geopolitical concerns and rising energy costs.
Meanwhile, China reported stronger-than-expected wholesale inflation for August, driven by commodity costs and tech demand. Investors are now looking ahead to upcoming inflation data for insights into potential Federal Reserve actions on interest rates.
Stock Futures Little Changed as Brent Crude Surpasses $99 Per Barrel
Stock futures remained largely unchanged in early trading on Wednesday, following a session marked by losses, as oil prices continued their upward trajectory. Brent crude futures approached the $100 per barrel mark, fueled by escalating geopolitical tensions between the U.S. and Iran.
In pre-market trading, Dow Jones Industrial Average futures saw a slight dip of 33 points, while the S&P 500 and Nasdaq 100 futures traded flat. This cautious sentiment in U.S. markets comes after a mixed performance in Asia, where Japan's Nikkei 225 was flat and the Topix added 0.27%. South Korea's Kospi gained 1.17%, and the Kosdaq rose 1.48%. However, Australia's S&P/ASX 200 was down 0.2%, and Hong Kong's Hang Seng index was flat, while mainland China's CSI 300 edged up 0.12%.
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Sept. 8, 2026. (Brendan McDermid | Reuters)
The rise in oil prices is attributed to heightened tensions between the U.S. and Iran, raising concerns about potential disruptions to Middle East energy supplies. U.S. benchmark West Texas Intermediate (WTI) futures for October delivery climbed 1.75% to $94.66 a barrel. Futures for Brent crude, the international benchmark, added 1.55% to $99.44 a barrel.
This surge in oil prices occurred after a previous session where crude advances put downward pressure on the major U.S. stock averages. The stock market had a challenging Tuesday, with the Dow Jones Industrial Average dropping 1.2%, marking its worst day in nearly three weeks. The S&P 500 and Nasdaq Composite slid 0.6% and 0.3%, respectively.
Adding to market concerns, the 10-year U.S. Treasury yield briefly climbed above the 4.8% level on Tuesday, further fueling inflation worries. Analysts suggest that with the earnings season winding down, market attention is shifting towards geopolitical risks.
European Markets Open Lower Amid Oil Price Surge
European stock markets opened lower on Wednesday. The Stoxx 600 index fell 0.49% shortly after the session began. Major European bourses followed suit, with the U.K.'s FTSE 100 down 0.23%, Germany's DAX off 0.42%, France's CAC 40 down 0.58%, and Italy's FTSE MIB shedding 0.95%.
Despite the overall downturn, energy stocks showed strength, rising 0.85% as oil prices neared the $100 mark. However, retail, travel and leisure, and banking sectors all experienced declines.
China's Inflation Data
In economic news, China reported higher-than-expected wholesale inflation for August. The producer price index (PPI) rose 3.8%, exceeding forecasts and July's growth. This increase was driven by higher global commodity costs and strong demand for high-tech goods. Consumer inflation, however, remained in line with expectations at 0.8%.
No major economic data releases or corporate earnings reports are scheduled for Wednesday in the U.S. Investors will be closely monitoring inflation readings later in the week for clues on the Federal Reserve's future interest rate decisions.
— Hugh Leask, Lee Ying Shan, Anniek Bao, Justina Lee
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