Advertisment
Stock futures plunged to start the week as U.S. oil topped $100 a barrel, raising concern about a stagflationary environment for the U.S. economy of rising inflation and slowing growth. The Dow Jones Industrial Average is coming off its biggest weekly slide in nearly a year.
Futures for the 30-stock index stumbled 595 points, or 1.3%, to 46.922.
Futures for the S&P 500 index flailed 75.25 points, or 1.1%, to 6,668.50.
Futures for the NASDAQ flopped 286.25 points, or 1.2%. to 24,384.
Oil futures jumped after major Middle East producers slashed their output due to the continued closure of the key Strait of Hormuz passageway. Kuwait announced cuts but did not say by how much, while Iraq has reportedly seen its production fall 70%.
Oil prices came off their highest levels of the session and stock futures rose from their lows following a Financial Times report that G7 officials were considering tapping their strategic reserves.
The Dow slid around 3% last week, its worst weekly decline since April. The broad S&P 500 shed 2%, while the NASDAQ ended the week 1.2% lower.
In Japan, the Nikkei 225 dropped 5.2% Monday, while in Hong Kong, the Hang Seng descended 1.4%.
Oil prices vaulted $11.57 to $102.57 U.S. a barrel.
Gold prices slipped $65.20 to $5,097.10 U.S an ounce.
