By Noreen Burke
Investing.com -- U.S. stock futures were broadly lower on Monday, as losses on Wall Street looked set to continue after a steep selloff on Friday as expectations for more aggressive rate hikes by the Federal Reserve and the European Central Bank weighed.
At 07:20 ET (11:20 GMT), the Dow futures contract was down 300 points or 0.9%, S&P 500 futures traded 43 points or 1.0% lower, and Nasdaq 100 futures were down 1.3%.
All three main indices on Wall Street ended Friday down around 3% as Fed Chair Jerome Powell indicated that the central bank would keep raising rates as high as needed to tame inflation and keep them there “for some time”.
Meanwhile, ECB board member Isabel Schnabel warned Saturday that central banks must act forcefully to curb inflation even at the risk of tipping economies into recession.
Investors have ramped up bets on U.S. rate hikes, with markets pricing in a greater chance of a 75-basis point hike from the Fed at its upcoming meeting in late September.
Oil prices were slightly higher as the prospect of production cuts by the Organization of the Petroleum Exporting Countries partially offset the effects of the stronger dollar.
OPEC last week raised the possibility of output cuts, which could help rebalance markets in the event of a possible increase in supply from Iran should it reach a nuclear deal with the West.
U.S. crude futures were up around 0.3% at $93.34 a barrel, while the Brent contract was also up 0.3% at $99.34 a barrel.
Meanwhile, the U.S dollar climbed to a 20-year high on Monday as U.S. Treasury yields spiked, with the dollar index, which measures the currency's value against a basket of peers, hitting a fresh peak of 109.48.