S&P 500 Futures Fall as $90 Oil and Fed Rate-Hike Bets Hit Markets

On August 31, Brent crude rose above $90 a barrel after renewed U.S.-Iran hostilities and traded near $90.60. S&P 500 futures fell about 0.4% and Nasdaq 100 futures declined roughly 0.5%, according to MC Markets.

Market participants increased their bets on a September Federal Reserve rate hike as they reassessed Fed policy.

Swissinfo, citing Bloomberg, reported that stocks and gold were pressured as oil gained and traders raised their rate-hike bets.

Brent crude tops $90 as U.S.-Iran hostilities renew

Brent crude rose 2.5% to $90.25 per barrel on August 31 following renewed U.S.-Iran hostilities, then traded near $90.60.

S&P 500 and Nasdaq 100 futures moved lower, indicating a weaker start for equities, while markets reassessed Federal Reserve policy amid the rise in oil prices and increased expectations of a rate hike.

September Fed hike odds jump to 57%

Market-implied odds of a 25-basis-point rate increase at the Fed's September 16 meeting climbed to about 57% on August 31, according to the CME Group's FedWatch measure. That was up from roughly 35% before Fed Chair Kevin Warsh's Jackson Hole remarks.

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