US stock futures were trading higher on Friday, 11 September, as stocks looked to rebound after a weak previous session. The recovery came as crude oil prices retreated sharply ahead of the key US inflation report, which could influence expectations around the Federal Reserve's rate decision next week.
Futures linked to the Dow Jones Industrial Average were up 299 points, or 0.6%, while S&P 500 futures and Nasdaq-100 futures each climbed 0.6%. Crude oil prices reversed their earlier gains after a sustained rally, with Brent crude futures, the international benchmark, falling $4 a barrel to $104.14 after rising above $108 earlier.
Despite the pullback, crude prices remained up about 9% for the week. Bond yields have also followed the sharp rise in oil prices, with longer-dated securities touching multi-decade highs this week, amid concerns that higher energy costs could put further upward pressure on inflation.
The inflation concerns come as tensions in the Middle East escalate further. Iran-backed Houthi militants in Yemen reportedly advanced towards Red Sea coastal areas bordering the Bab el-Mandeb Strait. A successful push could further tighten their grip on the waterway, threatening deeper disruption to another key route for shipments from the Middle East.
The development came hours after President Donald Trump said he expected the Iran war to end after the US midterm elections.