US Stock Futures Edge Lower as Apple Slips Ahead of Launch Event

U.S. stock futures and Treasury prices fell as investors focused on inflation risk. According to Sina Finance, Brent crude rose above $100 a barrel for the first time since July, prompting traders to increase bets on further global rate rises. At 8:29 a.m. New York time (8:29 p.m. UTC+8), S&P 500 futures were down 0.4%, Nasdaq 100 futures fell 0.6% after erasing earlier gains, and Dow futures dropped 0.8%. Brent crude's move came just days before the latest U.S. inflation data, which market participants widely see as a key factor in whether the Federal Reserve raises rates next week. Money markets are currently pricing in about a 65% chance of a rate hike. Investors are also waiting for the U.S. Treasury to announce the size of Thursday's buyback operations for 10-year and 20-year bonds. Ashley Lester, MSCI's chief research officer, said equity risk continues to build as discount rates on stocks rise. He added that the question is how much AI-related earnings can continue to drive the market higher. The four-day rally in chip stocks is expected to end, with an exchange-traded fund tracking major chipmakers falling more than 1% in premarket trading. Apple fell 0.3% ahead of its foldable iPhone launch event. Lori Calvasina and other strategists at RBC Capital Markets said the risk of a U.S. stock pullback of as much as 10% is rising as the U.S. midterm elections approach and the market enters a seasonally weaker period.