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Dow Jones Industrial Average futures fell early Tuesday to kick off a shortened week of trading, with Wall Street keeping tabs on the U.S.-Iran war as well as rising trade tensions between Canada and the U.S.
Futures for the 30-stock index plummeted 416 points, or 0.8%, to 53,024.
Futures for the S&P 500 slid 22.5 points, or 0.3%, to 7,699.50.
Futures for the NASDAQ Composite eked ahead eight points to 29,573.75. Markets were closed Monday for Labour Day.
Stock futures moved lower as oil prices rose to six-week highs, rising for a third straight day, with Iran and the U.S. exchanging strikes over the weekend. Brent crude oil futures rose 2.3% to $99.22 per barrel. West Texas Intermediate futures climbed 3.3% to $94.54.
The Fed is due to hold a monetary policy meeting next week. Traders are pricing in a 60% chance the central bank will hike rates by a quarter-percentage point after the meeting.
Those odds could change this week with wholesale and consumer inflation data due Thursday and Friday, respectively. They could also be impacted by another jump in oil prices as tensions in the Middle East continue to rise.
Traders also have to contend with brewing trade tensions between the U.S. and Canada once again. Retaliatory tariffs from Canada on about $20 billion of U.S. goods take effect on Tuesday. President Donald Trump on Monday said ahead of the new duties that Canadian aircraft manufacturer Bombardier can’t sell in the U.S. unless Canada begins making its products in the U.S.
In Japan, the Nikkei 225 index dived 1.7% Tuesday, while in Hong Kong, the Hang Seng lost 0.4%.
Oil prices hiked $2.50 to $93.95 U.S. a barrel.
Gold prices plunged $35.30 to $4,541.30 U.S an ounce.
