FX.co ★ US Futures Pull Back Further

US equity futures were mostly lower as investors avoided taking on additional risk ahead of the US Producer Price Index (PPI) release. S&P 500 contracts edged down, Nasdaq futures fell 0.7%, and Dow futures were little changed. Producer prices are expected to have risen 0.4% in August from the prior month, as the war in Iran pushed up wholesale energy costs. Oil and fuel benchmarks have climbed further since the start of September amid renewed escalation in the conflict and stronger demand from Asia, intensifying pressure on equities given the possibility of a Federal Reserve rate hike next week. Chipmakers declined on concerns about their sensitivity to long-dated borrowing costs, with Marvell, Intel, and Lam Research each down about 3% in premarket trading. Nvidia slipped 1%, while Oracle was down 1% ahead of its earnings report after the close.