US equity futures extended losses as a hotter-than-expected PPI report and a sharp rise in oil and fuel prices pushed Treasury yields higher. Futures on the S&P 500 and Dow Jones Industrial Average fell 0.5%, while Nasdaq 100 contracts slid 1.1%.
Producer prices rose 0.4% in August from the prior month, as the conflict in Iran drove wholesale energy costs higher. Oil and fuel benchmarks have continued to climb since the start of September amid renewed escalation in the conflict and stronger demand from Asia, intensifying pressure on equities ahead of a possible Federal Reserve rate hike next week.
Chipmakers declined on concern over their sensitivity to rising long-dated borrowing costs, with Marvell, Intel, and Lam Research each down about 3% in premarket trading. Nvidia slipped 1%, and Oracle lost 1.5% ahead of its earnings release after the closing bell.
Apple edged higher, trimming the previous session’s losses after unveiling a slate of new products, including the foldable iPhone Duo.
