Traders work on the floor of the New York Stock Exchange on August 16, 2023 in New York City.
Michael M. Santiago | Getty Images
S&P 500 futures nudged lower Wednesday morning as Wall Street looked beyond the losing session that marked the start of the holiday-shortened trading week.
Futures tied to the broad index and Dow Jones Industrial Average were lower by 34 points, or 0.1%. Nasdaq 100 futures shed 0.33%.
The moves follow a down session on Wall Street, which was the first of the holiday-shortened trading week. The Dow finished close to 200 points, or roughly 0.6%, lower, while the S&P 500 and Nasdaq Composite slipped 0.4% and nearly 0.1%, respectively.
Part of the downward pressure came from oil prices, which rose after Saudi Arabia and Russia extended their voluntary supply cuts. West Texas Intermediate futures rose more than 1% and briefly broke $87 per barrel, putting the price at its highest level since November.
Treasury yields also jumped in the session. Oil prices and yields climbing can raise concerns about how the Federal Reserve will move interest rates going forward, according to Bill Merz, head of capital market research at U.S. Bank Wealth Management.
“Rising oil prices really feeds into the story about inflation,” he said. “And the story about inflation feeds into bond yields and a story about the Fed and what the Fed is going to do.”
Investors will watch Wednesday for economic data in the morning on the U.S. trade deficit and services industry. A new beige book, which summarizes economic activity, will be released in the afternoon.