On Monday, Nasdaq futures pointed to a slightly lower opening, matching the jump in oil prices caused by the U.S. and Iran’s exchange of military strikes. Futures on the S&P500, the DJIA, and the Nasdaq 100 all fell by 0.2 percent, 0.2 percent, and 0.1 percent, respectively, during the last trading session. A statement from U.S. Central Command on Monday indicated that U.S. forces had struck Iranian minelayers judged to be “posing an imminent threat in the Strait of Hormuz,” which caused crude oil prices to rise significantly. Responsively, Iran initiated countermeasures against American military bases in Jordan.
Brent oil futures, the worldwide standard, jumped 3.6% to $91.25, while U.S. benchmark West Texas Intermediate fell 3.7% to $86.50 per barrel. Prior to the bell, shares of ExxonMobil and oil behemoth Chevron increased by almost 2%. Marvell Technology weighed on tech equities and Federal Reserve Chair Kevin Warsh signalled the central bank’s resolve to manage inflation, so stocks ended last week with gains, despite a decline on Friday. On Monday, August saw gains of almost 4% for the Nasdaq Composite, 3% for the S&P 500, and 2% for the Dow Jones Industrial Average.
Following a 10% drop on Friday, Marvell stock fell by less than 1% on Monday. On the other hand, after falling more than 3% the day before, the iShares Semiconductor ETF made a small recovery. In premarket trade, Nvidia’s stock, which plummeted 4.6% on Friday to lead the Dow decliners, rose less than 1%. On Apple’s final day as CEO before Tim Cook quits and John Ternus takes over, the stock ticked lower, while most of the other seven mega-cap tech companies were in the negative. A little loss was recorded by the Roundhill Magnificent Seven ETF prior to the bell.
In recent trade, the yield on the 10-year Treasury note-a crucial factor in determining interest rates for a range of consumer loans like mortgages-was about 4.73%, reflecting a one basis point increase from Friday’s closing. Bitcoin recently reached $78,400, a small decrease from the previous day. Falling 0.2% to 99.52, the U.S. dollar index follows the value of the dollar relative to a basket of international currencies. With a decline of 0.7%, gold futures settled at $4,500/oz. Following this week’s earnings release from Broadcom on Wednesday, investors will be looking forward to Friday’s jobs data and the August earnings report.
