Dow futures plunge more than 400 points: 5 things to know before Wall Street opens

• Brent crude rose above $99 and WTI climbed above $94 after Houthi attacks on Saudi energy infrastructure, pushing the 10-year Treasury yield toward 4.81% and adding pressure on rate-sensitive equities.
• Markets are pricing in a 60% probability of a Fed rate hike in September, with Thursday's PPI and Friday's CPI reports (expected at 3.4% headline, 2.4% core) critical for the decision.
• The Dow faced additional pressure from Amgen, which fell over 5% after Novartis reported its pelacarsen drug trial failure, while energy stocks and AI-linked chipmakers showed relative strength.

Market Summary

Market Movement:

U.S. stock futures tumbled Tuesday morning, with Dow futures plunging over 400 points (-0.7%), S&P 500 futures down 0.2%, and Nasdaq 100 futures declining 0.1%. The selloff was driven by surging oil prices and mounting inflation concerns ahead of critical economic data releases.

Key Catalysts:

*Oil Price Surge:* Brent crude rose above $99/barrel while WTI climbed above $94 following Houthi attacks on Saudi energy infrastructure, reviving fears of Middle East supply disruptions. The 10-year Treasury yield moved toward 4.81% as rising crude prices fed into rate-sensitive assets.

*Inflation Data Watch:* Markets are focused on Thursday's Producer Price Index (PPI) and Friday's Consumer Price Index (CPI) releases. Economists expect headline CPI to remain around 3.4% year-over-year, with core inflation potentially easing to 2.4%.

*Fed Rate Decision:* Markets are pricing a 60% probability of a rate hike at the September 15-16 Federal Reserve meeting, especially after August payrolls rose by 162,000—well above forecasts.

Company-Specific News:

• Amgen fell over 5% premarket after Novartis reported its pelacarsen trial failed to meet primary endpoints
• Energy stocks gained, with Marathon Petroleum and Occidental Petroleum rising on higher crude prices
• Chip stocks showed resilience: Intel up 2.5%, AMD up 1%, Nvidia edged higher
• Crypto-linked stocks retreated as Bitcoin dropped below $78,500, pressuring Coinbase and Strategy

Market Implications:

The combination of near-$100 oil and rising yields creates significant headwinds for equities, particularly rate-sensitive sectors. This week's inflation data will be critical in determining Fed policy direction and market trajectory.