U.S. stock futures are lower in premarket trading as oil prices rallied on an escalation of fighting in the Middle East.

Crude prices are up over 2% near $94 a barrel and hit three-month highs overnight with Iran and the U.S. exchanging strikes over the weekend. Yields are also moving slightly higher this morning with the benchmark 10-Year near 4.8%.

The moves come ahead of next week’s FOMC meeting with a near 60% probability of a 25-basis-point rate hike, according to the CME FedWatch tool. With little economic data due today, investor focus will be on geopolitical tensions, oil prices, and yields ahead of PPI and CPI inflation data due later this week. 

Snapshot (as of 7:40 AM ET)

• Oil (/CL) – Oil futures are up 2.56% to $93.82 per barrel
• Gold (/GC) – Gold futures are down 0.57% to 4,450.50 per ounce
• Bitcoin (/BTC) – The cryptocurrency futures are down 1.89% to 78,545
• VIX (/VIX) – The CBOE Volatility Index is up 2.88% to 15.74
• U.S. Dollar ($DXY) – The dollar index is down 0.21% to 98.961

Big Premarket Movers (as of 7:40 AM ET)

Advancers

• Oracle (ORCL) 4.80%
• Intel (INTC) 3.92%
• Freeport-McMoRan (FCX) 2.86%
• Vistra (VST) 2.52%
• Eaton (ETN) 2.23%

Decliners

• Amgen (AMGN) -5.54%
• ServiceNow (NOW) -2.11%
• Chipotle Mexican Grill (CMG) -2.08%
• Best Buy (BBY) -1.91%
• Boston Scientific (BSX) -1.88%

Economic Data (ET)

• 6:00 AM: NFIB Small Business Optimism Index
• 1:00 PM: 3-Year Note Auction
• 3:00 PM: Consumer Credit

Notable Earnings

• Premarket: ABM, UNFI
• Postmarket: CASY, GME, AVO, TTAN
• Premarket Wednesday: ASO, CHWY, CGNT, CNM, SAIL, SIG
• Postmarket Wednesday: AVAV, AEO, COO, SKIL

Upgrades/Downgrades

• Northland upgrades Intel (INTC) from Market Perform to Outperform
• KeyBanc upgrades Sweetgreen (SG) from Sector Weight to Overweight
• Freedom Capital upgrades Costco (COST) from Hold to Buy
• Morgan Stanley upgrades Synopsys (SNPS) from Equal Weight to Overweight
• UBS upgrades Eaton (ETN) and Lockheed Martin (LMT) from Neutral to Buy
• Citi upgrades C.H. Robinson (CHRW) and Old Dominion Freight Line (ODFL) from Neutral to Buy
• Arete downgrades JD.com (JD), PDD Holdings (PDD), and Baidu (BIDU) from Buy to Neutral
• Phillip Securities downgrades Palo Alto Networks (PANW) from Accumulate to Neutral
• DA Davidson downgrades Best Buy (BBY) from Buy to Neutral
• BMO Capital downgrades BioNTech (BNTX) and Amgen (AMGN) from Outperform to Market Perform
• Melius Research downgrades L3Harris Technologies (LHX) from Buy to Hold
• TD Cowen downgrades Autoliv (ALV) from Buy to Hold

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