US stock index futures pointed to a higher open on Friday as crude oil prices declined and investors assessed the latest consumer inflation data following several sessions of equity market losses.
US crude futures fell nearly 3%, moving back below $100 a barrel after rising more than 12% since the beginning of the week.
The decline followed a Financial Times report that Iran and Oman will meet Gulf states next week to discuss reopening shipping through the Strait of Hormuz.
The Dow and S&P 500 had fallen to their lowest closing levels in more than a month during Thursday’s session.
US Consumer Prices Rise 0.4% in August
US stock futures remained higher following the release of August consumer price data from the Labor Department.
The consumer price index increased 0.4% month on month in August, following a 0.1% rise in July and matching economists’ expectations.
Core consumer prices, which exclude food and energy, increased 0.3%, compared with a 0.2% rise in July and an economist forecast for another 0.2% increase.
On an annual basis, headline inflation remained at 3.4%. Annual core inflation declined to 2.4% from 2.5% in July, matching expectations.
The inflation figures come ahead of the Federal Reserve’s monetary policy meeting next week.
Dow and S&P 500 End Thursday at One-Month Lows
US equities declined on Thursday, extending losses from previous sessions.
The Dow Jones Industrial Average fell 316.56 points, or 0.6%, to 52,064.10. The Nasdaq Composite declined 171.62 points, or 0.7%, to 26,081.72, while the S&P 500 lost 44.66 points, or 0.6%, to 7,591.70.
The Dow and S&P 500 recorded their lowest closing levels in more than a month.
The declines occurred as US crude futures moved above $100 a barrel for the first time since May amid concerns about the duration of the conflict between the US and Iran.
The source cited a Wall Street Journal report saying US officials indicated that White House advisers had privately discussed with President Donald Trump the possibility that the conflict could continue through the remainder of his term.
Trump said on Wednesday that he expected the conflict to end immediately after the midterm elections.
Treasury Yields Rise as Oil Prices Increase
The recent increase in crude oil prices was accompanied by higher US Treasury yields, with the benchmark 10-year yield reaching its highest level in almost three years, according to the source.
The moves in oil and bond markets came as investors considered the outlook for interest rates ahead of next week’s Federal Reserve meeting.
Several equity sectors declined during Thursday’s session. The NYSE Arca Gold Bugs Index fell 3%, while the Philadelphia Semiconductor Index declined 2.7%.
The NYSE Arca Computer Hardware Index lost 2.3%, while housing, airline and biotechnology stocks also moved lower.