US Index Futures Drop as Oil Tops $102

US equity futures fell on Sunday evening, pressured by a fresh surge in crude prices and cautious commentary from artificial intelligence executives. Around 18:00 New York time, S&P 500 futures fell roughly 0.5%. Nasdaq 100 futures dropped 1.2%, while Dow Jones futures shed approximately 180 points, or 0.3%.

Energy markets drove immediate pressure after Saudi Arabia shut an important pipeline that bypasses the Strait of Hormuz, intensifying supply concerns in the Middle East. WTI crude futures rose 2.3% to $102.38 per barrel, having topped $100 last week for the first time since May. Brent crude gained 2.3% to trade at $107.02 per barrel. During the prior week, the Dow Jones dropped 1.6% in its worst performance since March, the S&P 500 fell about 0.8%, and the Nasdaq Composite slipped 0.7%.

Technology sentiment softened after Sam Altman, CEO of OpenAI, stated in an interview published on Saturday that the firm will not pursue an initial public offering this year, calling a listing imprudent. About a month earlier, CFO Sarah Friar indicated a possible IPO by 2027. Separately, Dario Amodei, CEO of Anthropic, urged leading model developers to slow their pace given technology risks, noting on CBS News that China might not mirror restraint. This followed a departure by an Anthropic researcher who warned about AI risks.

Investors also looked ahead to this week's Federal Reserve policy meeting. Fed Funds futures tracked by the CME FedWatch tool indicated an approximate 86% probability of an interest rate increase, with higher fuel costs compounding inflation concerns.