Stock futures point lower; budget stand-off warnings - what's moving markets

investing.com:

Investing.com -- Stocks point into the red to begin the final trading week of September, as equities are feeling the pressure from the Federal Reserve's hawkish policy stance. Elsewhere, traders are cautiously gauging the progress of a budgetary stand-off in Washington, while a tentative deal is reached in the protracted negotiations between Hollywood writers, film studios and streaming services.

1. Futures point lower

U.S. stock futures edged lower on Monday, as investors kept an eye on signs of a prolonged elevation in interest rates that have weighed on Wall Street throughout September.

At 05:05 ET (09:05 GMT), the Dow futures contract had dipped by 57 points or 0.2%, S&P 500 futures slipped by 8 points or 0.2%, and Nasdaq 100 futures fell by 34 points or 0.2%.

The Federal Reserve suggested last week that borrowing costs will need to remain higher for a longer period of time, placing upward pressure on bond yields and dampening stocks. Equity markets have also been contending with a surge in oil prices and renewed strength in the U.S. dollar.

Entering the final week of trading in September, the benchmark S&P 500 is down 4.2% for the month, the tech-heavy Nasdaq Composite has slid by 5.9% and the 30-stock Dow Jones Industrial Average has shed 2.2%.

2. Crucial week in U.S. budget stand-off begins

U.S. lawmakers are attempting to find a resolution to an ongoing budget stand-off ahead of October 1, when the federal government is set to run out of funding for its operations.

Over the weekend, Democrats and Republicans in Congress both warned that there is a chance a deal will not be reached. However, House Speaker Kevin McCarthy, a leading GOP figure, has remained hopeful that a shutdown could be avoided.

McCarthy has