Some economists are calling on the central bank to wait before raising interest rates, out of concern the economy may be vulnerable beneath the surface.

As of 4:00 a.m. ET, Nasdaq and Dow futures declined 0.7%, S&P 500 futures fell 0.6%, and Russell 2000 futures fell 0.8%. On Stocktwits, retail sentiment for the SPDR S&P 500 ETF (SPY), an exchange-traded fund that tracks the S&P 500 Index, and Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100 Index, has remained 'extremely bearish.'

Ahead of the September meeting, inflation was rising faster than workers’ paychecks and hiring rebounded in August.

Earlier this month, Druckenmiller, whose views of the Fed and U.S. monetary policy have become closely scrutinized due to his close ties with Warsh and Bessent, put his name to a scathing Wall Street Journal op-ed, slamming his former protégé for attempting to manipulate and lower long-term bond yields.

Looking at history, the benchmark S&P 500 index has seen an average three-month return of negative 2% at the start of a Fed hiking cycle throughout the past few decades, according to Goldman Sachs.

Potential Federal Reserve rate hikes starting this week could spur a correction in the S&P 500 as reduced corporate margins hurt profit outlooks and markets brace for a tightening cycle, according to Macro Risk Advisors LLC.

While higher oil is cited as a main reason for the change in view, roughly three quarters of respondents see the inflation problem as broader than just energy prices.

With a strong jobs report and a hotter-than-expected core CPI report for August, the Federal Open Market Committee is widely expected to raise its benchmark rate to 3.75%-4.00% from the current target range of 3.