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US Futures Slide as Oil Surge Clouds Rate-Cut Outlook

U.S. stock futures fell Monday as rising oil prices and geopolitical tension weighed on sentiment, forcing investors to reassess interest rate cut expectations.

At 04:43 a.m. ET, Dow futures dropped 0.5%, S&P 500 futures lost 0.63%, and Nasdaq 100 futures declined 0.72%.

Surging energy prices raised concerns about persistent inflation, complicating the Federal Reserve’s path and reducing optimism for near-term monetary easing.

The CBOE Volatility Index climbed to a two-week high, signaling elevated market uncertainty and increased demand for downside protection.

Energy stocks outperformed in premarket trading, with Exxon Mobil and Chevron gaining about 1%, while Occidental Petroleum rose 1.5%.

Wall Street’s main indexes recorded a fourth consecutive weekly loss, with the Nasdaq posting its steepest decline since early February.

The Russell 2000, sensitive to higher borrowing costs, remained in correction territory, with futures down 1.2% in early trading.

Investors now turn to upcoming economic data, including business activity and consumer sentiment, for further clues on market direction.

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