S&P 500 Futures steadied at 7,702.75 points, Nasdaq 100 Futures were flat at 29,505.0 points, and Dow Jones Futures rose slightly to 53,287.0 points

U.S. stock index futures steadied on Monday evening amid persistent caution over more interest rate hikes by the central bank and renewed hostilities with Iran.

S&P 500 Futures steadied at 7,702.75 points, Nasdaq 100 Futures were flat at 29,505.0 points, and Dow Jones Futures rose slightly to 53,287.0 points by 23:50 GMT.

Futures steadied after a negative session on stock market, where rising Treasury yields and a rebound in oil prices pressured risk-driven assets. Caution ahead of key nonfarm payrolls data due on Friday also kept investors to the sidelines.

Oil prices rose sharply on Monday after Iran and the U.S. were seen resuming hostilities for the first time in a month, pointing to continued supply disruptions.

The development spurred growing doubts over efforts to broker peace in the Middle East, especially after Washington imposed its economic sanctions on Tehran last week.

The Strait of Hormuz remained close, with recent data showing shipping activity at a fraction of pre-war levels.

The surge in oil prices also factored into concerns over sticky inflation, which could in turn elicit a hawkish outlook for the central bank.

Still, stock market clocked strong gains in August, in part driven by a rebound in technology stocks from bruising losses in the prior month.

But September is historically weak for stock market, spurring questions over whether the rebound will sustain.

Markets were seen ratcheting up bets on an interest rate hike this year after central bank Chair Kevin Warsh struck a hawkish note during an address on Friday.

Speaking at the Jackson Hole economic symposium, Warsh reiterated the bank’s commitment to its 2% annual inflation target.

While the central bank chair did not explicitly mention raising rates, his comments did spur bets that the central bank will have to hike rates to stave off sticky inflation.

Markets are pricing in a 64.4% chance the bank hikes by 25 basis points in September, up from 42.7% last week, CME Fedwatch showed.