U.S. stock futures drop as investors remain cautious

S&P 500 Futures dropped 0.5% to 6,769.0 points, Nasdaq 100 Futures declined 0.5% to 24,860.50 points, while Dow Jones Futures traded 0.4% lower at 47,584.0 points

U.S. stock futures dropped on Monday evening after the country’s stock market ended the regular session higher, as investors remained cautious.

S&P 500 Futures dropped 0.5% to 6,769.0 points, while Nasdaq 100 Futures declined 0.5% to 24,860.50 points by 00:25 GMT. Dow Jones Futures traded 0.4% lower at 47,584.0 points.

On the local stock market, the main indexes finished higher on Monday after recovering from earlier losses tied to a surge in crude prices. The Dow Jones Industrial Average gained 0.5%, while the S&P 500 added 0.8% and the NASDAQ Composite rose 1.4% as investors took some comfort from the president’s comments about the war.

Energy markets remained a central focus for investors. Oil prices soared sharply at the start of the week, briefly approaching $120 a barrel on Monday amid concerns that disruptions in the Middle East could threaten global supply.

The spike in oil prices raised fears that higher energy costs could significantly slow the U.S. economy, while also eroding consumer purchasing power and corporate margins.

However, crude prices pulled back during the Asian trading session on Tuesday, easing from the sharp rally seen a day earlier.

The recent surge in oil prices has heightened concerns about inflation. Persistently high energy costs could push headline inflation higher again, complicating the policy outlook for central banks that had been preparing to ease monetary policy gradually.

Investors await a batch of U.S. economic data later this week that could shape expectations for central bank policy.

The January consumer price index report is scheduled for release on Wednesday, while the February personal consumption expenditures price index is due on Thursday.

These reports are expected to provide further clues on U.S. interest rates in the coming months.