Dow Futures Drop 400+ Points as Oil Tops $99

Dow futures plunged more than 400 points in early U.S. trading after Brent crude climbed above $99 a barrel following attacks that damaged Saudi energy infrastructure. S&P 500 and Nasdaq futures also slipped as Treasury yields rose.

Brent topped $99 and West Texas Intermediate traded above $94, raising the risk of wider disruptions to Gulf supply. The 10-year Treasury yield approached 4.81%, adding pressure on stocks sensitive to higher borrowing costs.

Investors are focused on U.S. inflation reports due at 8:30 a.m. ET on Thursday and Friday: the producer price index and the consumer price index. Economists expect headline CPI near 3.4% year on year and core CPI around 2.4%. Market pricing shows a softer-than-expected reading could reduce expectations for a September rate increase, while a stronger reading could push yields higher.

Trading desks assign about a 60% probability to a rate increase at the Federal Reserve’s Sept. 15-16 meeting after August payrolls rose by 162,000 and July employment was revised higher.

Sector moves were mixed in premarket trading. Amgen fell more than 5% after Novartis reported a late-stage pelacarsen trial failed to meet its primary cardiovascular endpoint; Amgen’s high share price amplified the Dow’s decline. Energy stocks such as Marathon Petroleum and Occidental Petroleum rose as crude prices climbed.

Technology stocks held up, with Intel up about 2.5%, AMD up around 1% and Nvidia edging higher on continued demand for AI-related chips. Crypto-linked names retreated as bitcoin slipped below $78,500, with Coinbase and MicroStrategy among the decliners.

Deutsche Bank strategist Jim Reid described the Middle East escalation as “adding to the oil rally and broader market unease.”

Oil markets have been sensitive to Gulf tensions, where supply disruptions can tighten global crude availability. The upcoming inflation reports will be watched for signs of how recent labor gains and higher energy costs are influencing price pressures and expectations for Federal Reserve policy.