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US stock futures fell on Monday, September 28, as oil prices rose after President Donald Trump rejected an Iranian peace proposal. Higher crude prices renewed concerns about inflation, while Treasury yields climbed. NASDAQ 100 futures led the decline ahead of the opening bell.
At 7:15 a.m. Eastern time, NASDAQ 100 futures were down 0.98%, according to Yahoo Finance. S&P 500 futures fell 0.52%, while Dow Jones Industrial Average futures lost 0.59%. The figures show where the indexes stood before regular trading began and may change before the stock market opens.
The decline followed a strong week for US stocks. The NASDAQ Composite gained 2.1% last week, while the S&P 500 rose 1.2%. The Dow added 0.3%, ending a three-week losing streak. Technology shares drove much of the advance, with Meta Platforms rising nearly 13% during the week.
Monday’s premarket moves put some of those gains under pressure. Meta shares fell in early trading after their weekly rise. Tesla also declined after J.P. Morgan lowered its price target, citing its forecast for third-quarter vehicle deliveries. The broader indexes remained sensitive to both oil prices and borrowing costs.
Trump said on Saturday that he had rejected an Iranian proposal to end the conflict. Iran had presented the plan during last week’s United Nations General Assembly and said it had sent the proposal to the United States through Qatari mediators, Reuters reported. Trump later told Axios that he expected US negotiators to continue talks this week.
Accounts of the proposal describe conditions involving a temporary reopening of the Strait of Hormuz. Those terms remain part of the reported negotiations, and no agreement to reopen the waterway has been announced. The strait is a key route for Middle Eastern oil shipments, so traders are watching for any change in access.
Brent crude rose more than 3% to around USD 108 a barrel during Monday’s trading, while US crude also advanced. Oil prices have moved sharply as traders assess how long the disruption to regional supplies may last. Last week, Brent briefly fell below USD 100 a barrel amid hopes that talks could ease the conflict.
US Treasury yields rose alongside oil prices. The 10-year yield moved above 5.2% after ending last week at its highest level since 2007. Bond yields rise when prices fall, and higher yields increase the borrowing costs faced by governments, businesses and households.
Rising energy costs have added to concerns that inflation could remain elevated. Traders have also increased their bets on further Federal Reserve rate increases. These shifts matter to the stock market because investors compare expected returns from shares with the yields available on bonds.
The moves followed a week in which US stocks advanced even as Treasury yields climbed. Monday’s premarket decline shows investors reassessing that balance as crude prices rise again. The direction of regular trading will become clearer after the US market opens.
Investors will receive several US economic reports this week. The August personal consumption expenditures price index, an inflation measure closely watched by the Federal Reserve, is due Wednesday. Manufacturing data follows on Thursday, and the September jobs report is scheduled for Friday.
Federal Reserve officials Michelle Bowman, Lisa Cook and Thomas Barkin are also due to speak on Monday. Traders will watch their remarks for clues about how policymakers view inflation, the labor market and interest rates after the latest rise in oil prices.
Markets outside the United States were mixed before the US open. Japan’s Nikkei 225 closed 0.73% lower, and South Korea’s Kospi fell 2.7%. European benchmarks rose in early trading, with France’s CAC 40 and Britain’s FTSE 100 both higher. US futures, however, continued to point to a lower start for Wall Street.
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