By Shreyashi Sanyal

(Reuters) – U.S. Stock Index Futures fell Monday due to rising commodity prices and inflation concerns. This could affect the earnings season that will begin with Wall Street Banks later in this week.

There are concerns that rising prices and labor shortages could lead to a reduction in corporate profit.

U.S. oil prices rose by nearly 3% to reach a seven year high, as the severe energy crisis affecting major economies did not ease.

It also lifted shares Chevron Corp (NYSE:) Exxon Mobil Corp (NYSE:), and APA Corp are between 1.2% – 3% in premarket trades.

Mega-caps Apple Inc (NASDAQ:), Microsoft Corp (NASDAQ.com Inc:) and Amazon.com Inc.

Joshua Mahony (senior market analyst, IG) wrote that there are “undoubtedly substantial risks to growth borne from the recent increase in prices.” He made this statement in a client letter.

“Inflation appears to be here for a while.”

7.01 AM ET ET fell 117 points (or 0.34%) and was down 21.5 points, or0.49%. It also dropped 107.25points, or0.72%.

Earnings season will kick off this week, with JPMorgan Chase & Co (NYSE:) reporting on Wednesday, followed by Bank of America Corp (NYSE:), Morgan Stanley (NYSE: Citigroup Inc (NYSE:) Thursday, Goldman Sachs Group Inc (NYSE: ) Friday.

Refinitiv data shows that analysts expect a 29.6% rise in company profits year over year in the third trimester, compared to the 96.3% increase seen in the previous quarter.

Wall Street’s principal indexes all ended the week with gains. However, investors expect that the Federal Reserve will begin to taper assets purchases later in this year.

Data last week showing a lower job growth rate than was expected in September has prompted investors to look at inflation and retail sales data this week. They also analyzed minutes from last Fed meeting, which could prove that November’s tapering had been discussed.

Southwest Airlines (NYSE) Co lost 1.9% due to reports that the airline had cancelled at most 30% of its flights scheduled for Sunday.