S&P Futures Decline as Oil Prices Rise and Tensions Escalate in the Middle East
On Wednesday, S&P 500 E-Mini futures fell by -0.27% amid rising oil prices driven by escalating U.S.-Iran tensions. Brent crude surpassed $100 a barrel for the first time since July, while WTI climbed above $95 as fighting intensified with no immediate de-escalation in sight. The U.S. military reportedly destroyed five Iranian tankers on Tuesday after an attack attempt on a Navy warship, prompting Iran to retaliate by launching missiles at Jordan and issuing warnings to ships in the Persian Gulf. Higher oil prices fueled inflation concerns, pushing up bond yields as investors sought safer assets. The 10-year Treasury note yield rose two basis points to 4.81%. In equities, Amgen dropped over -10% after a failed drug trial by Novartis and software stocks like Atlassian and Thomson Reuters fell more than -6%. However, chipmakers such as Intel surged nearly +9%, reflecting continued strength in the AI sector. Investors are closely watching upcoming inflation data for August ahead of the Federal Reserve’s policy meeting. Rate futures currently price a 60.4% chance of a rate hike at next week's meeting.
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Topics: bond_yields inflation_concerns oil_prices stock_indices