A fresh round of US-Iran strikes over the weekend pushed oil higher and split US stocks on Monday, with the Dow edging up while the S&P 500 and Nasdaq slipped. The escalation revived inflation worries days before this week’s CPI and PPI reports.
Renewed fighting between the US and Iran sent oil prices climbing on Monday and pulled US stocks in different directions. The Dow Jones Industrial Average rose by roughly 0.1%, the sole gainer among the major indexes. The S&P 500 dropped 0.3% while the Nasdaq Composite fell by 0.7%, giving back gains the two indexes had eked out last week.
Oil climbs as Hormuz fears return
Oil led the reaction. Brent crude neared $80 per barrel again after Iran’s IRGC declared that the Strait of Hormuz would be closed until further notice and said it would not allow vessels to transit the strait until American interventions in the area end. The US insisted the strait remains open, leaving Washington and Tehran with conflicting accounts of the chokepoint’s status.
The move followed a weekend of escalation. The US renewed strikes near the Strait of Hormuz, and Iran retaliated with fresh strikes against US allies, including Kuwait, Jordan, and Qatar. The flare-up threatened to derail talks meant to end the war, which President Trump said were ongoing even as he called the ceasefire over.
Inflation reports loom
The return of hostilities revived inflation worries just as traders brace for two key readings. The market is set to receive the Consumer Price Index on Tuesday and the Producer Price Index on Wednesday, which will offer fresh signals on the likelihood of Fed interest rate hikes this year.
Investors are also looking to the unofficial kick-off of earnings season this week. Big banks lead it off, with results from JPMorgan Chase, Goldman Sachs, and Bank of America, while Taiwan Semiconductor’s quarterly results will provide a signal on AI demand.
Source: Yahoo Finance
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