Brent crude futures jumped above $99 a barrel in after-hours trading Tuesday after a report surfaced of a previously undisclosed second Iranian attack on U.S. Navy ships. Earlier in the session, a separate advance in oil had already pressured stocks and pushed the 10-year Treasury yield above 4.8%.
Brent crude futures jumped above $99 per barrel in extended trading Tuesday, following a report that Iran launched a second salvo of attacks on U.S. Navy ships this week that was previously undisclosed. U.S. West Texas Intermediate crude crept above $94 per barrel after hours.
That after-hours jump followed a separate advance in oil during the regular session, which had already put downward pressure on the three major averages in their first session of a holiday-shortened trading week; markets were closed Monday for Labor Day. The Dow dropped 1.2% on Tuesday, marking its worst day in almost three weeks, while the S&P 500 and Nasdaq Composite slid 0.6% and 0.3%, respectively.
The 10-year U.S. Treasury yield also briefly climbed above the closely watched 4.8% level during Tuesday's session as rising oil prices added to concerns about inflation, further weighing on stocks. According to CNBC: "a little bit of a speed bump" is how Kara Murphy, investment chief at Kestra Investment Management, described the market's current focus.
Stock futures were little changed Tuesday evening as oil's ascent continued after hours. No major economic data or corporate earnings are scheduled for release Wednesday, but traders will watch inflation readings later in the week for clues on the Federal Reserve's next move on interest rates.
Source: CNBC
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