U.S. stock futures edged lower Tuesday as rising oil prices near $100 a barrel renewed inflation concerns ahead of the Federal Reserve’s policy meeting.
Markets also cooled following a tech-led rebound, with the S&P 500 posting its strongest daily gain in over a month in the previous session.
Escalating Middle East tensions and disruptions in the Strait of Hormuz continue to fuel uncertainty, keeping energy markets volatile and investors cautious.
Airline stocks showed resilience, with Delta boosting guidance and shares rising, while American Airlines also gained amid improving demand outlooks.
In contrast, cruise operators declined, reflecting sensitivity to higher fuel costs and broader concerns over economic slowdown risks.
Investors expect the Fed to hold rates steady, but markets are pricing a more hawkish outlook, with fewer anticipated rate cuts this year.
Treasury yields have risen, and analysts warn central banks may emphasize vigilance on inflation as geopolitical tensions push energy prices higher.
Energy stocks gained on stronger crude prices, while broader markets remained fragile, with volatility ticking higher amid ongoing geopolitical and economic uncertainty.
