Futures lower as rally in oil fuels inflation concerns By Reuters

By Shreyashi Sanyal

(Reuters) – U.S. stock index futures fell on Monday as soaring commodity prices added to inflation concerns, which could darken the earnings season set to start with Wall’s banks Street later this week.

Rising raw material costs, labor shortages and other supply chain bottlenecks have raised concerns that high prices will hurt corporate profits.

US oil rose nearly 3% and hit a seven-year high as an energy crisis affecting major economies showed no sign of abating.

But he raised shares of Chevron Corp (NYSE :), Exxon Mobil Corp (NYSE 🙂 and APA Corp between 1.2% and 3% in pre-market exchanges.

Mega-caps Apple Inc (NASDAQ :), Microsoft Corp (NASDAQ 🙂 and Amazon.com Inc (NASDAQ 🙂 fell between 0.6% and 0.8%.

“There are undoubtedly significant risks to growth resulting from the recent price hikes, with the surge in prices potentially leading to sharp increases in energy and food spending,” Joshua Mahony, senior market analyst at IG, wrote in a commentary. customer note.

“Inflation seems to be there for a while.”

As of 7:01 a.m. ET, they were down 117 points, or 0.34%, down 21.5 points, or 0.49%, and down 107.25 points, or 0.72%.

The earnings season kicks off this week, with a report from JPMorgan Chase & Co (NYSE 🙂 on Wednesday, followed by Bank of America Corp (NYSE :), Morgan stanley (NYSE 🙂 and Citigroup Inc (NYSE 🙂 Thursdays and Goldman Sachs Group Inc (NYSE 🙂 on Friday.

Analysts are seeing a 29.6% increase in year-over-year corporate profits in the third quarter, according to IBES data from Refinitiv as of Friday, down from 96.3% growth in the second quarter.

All of the major Wall Street indices ended last week with gains, but investors still expect the Federal Reserve to start cutting back on asset purchases later this year.

After data from last week showed weaker-than-expected job growth in September, investors are now looking to inflation and retail sales figures this week, as well as minutes from the latest Fed meeting which could confirm that a reduction in November has been discussed.

Southwest Airlines (NYSE 🙂 Co slipped 1.9% after announcing it canceled at least 30% of its scheduled flights on Sunday.