Stock Market Today: S&P 500, Dow and Nasdaq Futures Face Pressure as Brent Nears $108 and FOMC Commences Two-Day Meet

U.S. stock futures declined Tuesday as the Dow Jones, S&P 500 and Nasdaq 100 indices fell following Monday’s lower close.

New York State manufacturing activity expanded at a more modest pace in September as the Federal Reserve Bank of New York’s Empire State General Business Conditions Index dropped 13 points to 7.6. While overall growth moderated, inflationary pressures intensified as the input prices paid index rose five points to 63.1, even as labor market metrics showed resilience with average workweeks reaching a nearly five-year high.

The Federal Open Market Committee’s two-day meeting will commence, with all eyes on the FOMC’s policy direction. Meanwhile, the 10-year Treasury bond yielded 5.03% at the last check, topping 5% on Monday for the first time since 2023.

Veteran Ed Yardeni called it confidence in the economy, and Peter Schiff warned it’s just the start of a bigger climb, as the Federal Reserve’s interest rate decision looms on Wednesday.

The CME Group’s FedWatch tool projections show markets pricing in a 94.5% likelihood of the Federal Reserve hiking interest rates tomorrow.

Meanwhile, energy prices continue to surge amid the ongoing U.S.-Iran conflict, with Brent crude reaching $106.74 a barrel, up 1.00%. Sen. Elizabeth Warren (D-Mass.) blamed the war for national average gas prices hitting $4.31 a gallon. California Governor Gavin Newsom (D) criticized the administration for failing to shield Americans from predictable disruptions in the Strait of Hormuz. Meanwhile, Iran’s Security Chief Mohsen Rezaee stated there will be no negotiations until Tehran’s conditions are met.

The SPDR S&P 500 ETF Trust (NYSE: SPY) and Invesco QQQ Trust ETF (NASDAQ: QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were lower in premarket on Tuesday. The SPY was down 0.13% at $759.86, while the QQQ declined 0.092% to $708.53.