US stock index futures traded mixed on Tuesday as oil prices jumped on escalating Middle East hostilities and Canada's new retaliatory tariffs on U.S. goods took effect. Iran renewed a warning over its ballistic missile program, while Saudi Arabia reported attacks on its energy facilities.
US stock index futures traded mixed at the start of a shortened trading week on Tuesday, as traders weighed a jump in oil prices, escalating Middle East hostilities and a widening trade dispute with Canada.
Dow futures edged lower, extending a mixed tone across major index futures heading into the session.
Iran's missile warning and Saudi attacks fuel oil surge
Iran renewed its warning to the United States over its newly upgraded ballistic missile on Tuesday. According to The Independent, officials cautioned the country "will take action against any threat, even before it is carried out."
Crude prices surged as a result. West Texas Intermediate jumped 2.55% to $93.81 a barrel, while Brent crude rose 1.56% to $98.51 a barrel. Saudi Arabia also temporarily halted some operations at energy facilities in its southern region after attacks on the sites Tuesday morning, according to Oilprice.com, which cited the Saudi Press Agency.
Canada tariffs and Fed bets add to the pressure
Canada's retaliatory tariffs on U.S. goods took effect just after midnight Tuesday, as Prime Minister Mark Carney raised economic pressure on the country's largest trading partner after talks collapsed last month.
Capital.com senior market analyst Kyle Rodda said Middle East tensions and interest-rate uncertainty continue to weigh on markets heading into key U.S. price data later in the week. He added that the rally in oil prices is muddying the inflation picture following the latest U.S.-Iran exchange.
That uncertainty follows a stronger-than-expected jobs report that lifted expectations for a Federal Reserve rate hike this month and sent Treasury yields higher, pulling stocks lower to close last week.
Source: TheStreet
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