Stock futures were down as oil rose and a rally in AI stocks lost steam ahead of key tech earnings.
Brent climbed 4.1% to $94.72 a barrel, trading more than $20 above their early-July lows, after President Trump minimized the prospect of immediate talks with Iran.
The rise in oil prices along with natural gas and other commodity prices has lifted near-term inflation expectations, Deutsche Bank said.
"That backdrop meant investors priced in more Federal Reserve rate hikes , and speculation even returned about a potential rate hike next week."
Markets are now pricing in around 50 basis points of Fed rate hikes by April 2027, including a roughly 25% chance of a 25 basis-point increase next week, according to IG Markets.
