Stock Market Futures Fall Amid US-Iran Tensions and Rising Rate-Hike Bets
US stock futures declined on Monday following renewed military action against Iran, which triggered a rise in oil prices and increased expectations for an interest rate hike by the Federal Reserve. The Dow Jones Industrial Average, S&P 500, and Nasdaq-100 all saw slight declines in their respective futures contracts as tensions escalated over Iranian rocket launchers near the Strait of Hormuz. The conflict has kept inflation concerns alive, with Brent crude prices rising above $88 per barrel. Fed Chairman Kevin Warsh recently indicated that inflation remains too high and emphasized there is 'work to do.' As a result, traders now expect a 62% chance of a rate hike at the central bank's September meeting, up from around 40% last week. With earnings season largely over and minimal economic data on Monday’s agenda, attention will shift toward Friday’s Labor Department jobs report. Meanwhile, market volatility is expected to rise historically in late August through early October.
Tickers: $AAPL
Topics: interest rates oil prices stock market US-Iran conflict