U.S. stock futures flat on inflation concerns

S&P 500 Futures traded flat at 7,768.0 points, Nasdaq 100 Futures was muted at 30,107.75 points, while Dow Jones Futures traded 0.1% lower at 53,512.0 points

U.S. stock futures were little changed on Monday evening after stock market closed lower, as renewed tensions between Iran and the U.S. pushed oil prices higher and raised concerns about inflation.

By around 00:48 GMT, S&P 500 Futures traded flat at 7,768.0 points, while Nasdaq 100 Futures was muted at 30,107.75 points. Dow Jones Futures traded 0.1% lower at 53,512.0 points.

The muted futures action followed a weak session on U.S. stock market. The Dow Jones Industrial Average dropped 0.5%, the S&P 500 shed 0.5%, and the Nasdaq Composite slipped 0.3%.

Energy stocks were the only major S&P 500 sector to gain, adding 0.9%, as crude prices jumped more than $2 a barrel. Most other sectors dropped, with communications services and consumer staples among the biggest decliners.

Oil remained the key market driver as investors assessed the risk of a further escalation in the Iran-U.S. war. Brent crude added 2.7% to about $90.87 a barrel on Monday.

The rise in crude prices also pushed U.S. Treasury yields higher, with the 30-year yield closing at 5.31%, its highest level in around two decades. Higher energy costs have raised concerns that renewed inflation could complicate the U.S. central bank’s policy outlook.

Investors will also focus on a busy week of retail earnings, with Walmart Inc, Home Depot Inc and Target Corporation among the companies scheduled to report results.

The reports are expected to provide new clues on the health of the U.S. consumer after July retail sales and employment data came in weaker than expected.

Investors will turn to the central bank meeting minutes on Wednesday for clues on the debate over interest rates. The central bank left its benchmark rate unchanged at 3.50%-3.75% at its July 28-29 meeting, but the decision was divided, with three policymakers dissenting in favour of a rate hike.