Stock market today: Dow, S&P 500, Nasdaq futures fall as US strikes Iran, rate-hike bets jump
US stock futures declined on Monday after the US attacked Iran for the first time in weeks, fueling a rise in oil prices and increased bets that the Federal Reserve would raise interest rates at its September meeting.
Futures on the Dow Jones Industrial Average (YM=F) fell 0.1%, while those on the S&P 500 (ES=F) declined by 0.2%. Contracts on the Nasdaq-100 (NQ=F) dropped 0.1%, though all three major indexes were on track to post gains for the month.
Renewed hostilities in the Middle East put pressure on stocks after the US struck Iranian rocket launchers that were preparing to send mines into the Strait of Hormuz. Oil prices jumped on worries that the conflict could escalate again, with Brent crude futures (BZ=F) rising over $88 per barrel.
The ongoing war in Iran has been a key factor keeping inflation concerns alive. On Friday, Fed Chairman Kevin Warsh delivered a speech in Jackson Hole, Wyo., stating that inflation was running too hot and that the central bank has “work to do.” Over the weekend, traders lifted their bets that the Fed would raise rates by 25 basis points at its next meeting to 62%, up from roughly 40% a week ago.
With earnings season largely in the rearview mirror and Monday bringing a relatively quiet day for economic data, investors will turn their attention toward the Labor Department’s monthly jobs report on Friday.
