US stock futures moved lower on Tuesday as investors entered September with concerns over rising oil prices, higher Treasury yields, and the possibility of another Federal Reserve interest rate increase. Market attention also shifted toward upcoming labor data, which could offer more clues about the strength of the US economy.

Dow Jones Industrial Average futures fell about 0.4%, while S&P 500 futures dropped 0.47%. NASDAQ-100 futures declined about 0.9%, extending the cautious tone seen at the end of August.

Oil Prices and Treasury Yields Pressure Wall Street

Oil prices remained elevated after renewed fighting between the United States and Iran raised concerns over energy supplies. Brent crude traded close to $90 per barrel, adding to fears that higher fuel costs could keep inflation above the Federal Reserve's preferred level.

At the same time, US Treasury yields stayed near multi-month highs. The 10-year Treasury yield was around 4.75%, making government bonds more attractive compared with riskier assets such as stocks.

Richard de Chazal, macro analyst at William Blair, said, “Yields may not spike into crisis territory, but the low-rate era is unlikely to return soon.” He added that ‘the balance of risks still points to yields remaining elevated.’

Higher borrowing costs can place pressure on company valuations, particularly in the technology sector. Before the opening bell, NVIDIA, Intel, and AMD shares fell between 1.2% and 1.9%.

Fed Rate-Hike Expectations Remain in Focus

Investors are also assessing the Federal Reserve's next move after Chair Kevin Warsh placed renewed focus on inflation during his Jackson Hole speech.

Financial markets were pricing in more than a 65% chance of a 25-basis-point rate increase at the Fed's September meeting. Those expectations strengthened after oil prices climbed and inflation concerns returned.

However, uncertainty remains over whether policymakers will act this month. Paul Nolte of Murphy & Sylvest said, “If they do not hike rates in September, I think you will see a dramatic reaction in the markets.”

The Federal Reserve will receive several economic reports before making its decision. As a result, investors are watching each release closely for signs of changing labor conditions or price pressures.

JOLTS Jobs Data Takes Center Stage

The Job Openings and Labor Turnover Survey, known as JOLTS, is due later Tuesday. The report will provide information on job vacancies, hiring, and employee departures across the US economy.

Investors will also monitor Friday's nonfarm payrolls report, which is expected to provide a broader picture of employment conditions. Manufacturing data from S&P Global and the Institute for Supply Management will also be released during the week.

Glenmede investment strategists said the Fed's attention remains mainly on inflation. They noted that a payroll report close to expectations would likely keep future policy decisions tied more closely to price trends than job growth.

September Seasonality Adds to Market Caution

Wall Street is also entering a month that has historically produced weaker stock market returns. Since 1926, the S&P 500 has lost about 0.7% on average during September, making it the weakest month of the year by that measure.

Still, the major US indexes entered September after posting gains in August. On Monday, the Dow fell 0.70%, the S&P 500 declined 0.33%, and the NASDAQ Composite slipped 0.12%, although all three ended the month higher overall.

Energy stocks also gained as crude prices rose. Exxon Mobil and Devon Energy advanced in premarket trading on Tuesday, while technology shares remained under pressure.

Markets will now focus on employment data, oil prices, Treasury yields, and Federal Reserve expectations as investors assess the direction of US stocks in September.

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