Dow futures dropped more than 400 points ahead of Tuesday's open as the U.S. and Iran continued exchanging attacks over the weekend, sending oil prices sharply higher. Brent crude climbed back near $98.55 a barrel while West Texas Intermediate advanced to about $93.70.
Dow futures dropped 0.8%, or more than 400 points ahead of Tuesday's open, as the U.S. and Iran continued to trade attacks over the weekend. Oil prices jumped alongside the selloff, with Brent crude rising near $98.55 a barrel.
S&P 500 futures lost 0.2%, while Nasdaq-100 futures edged higher in early trading. West Texas Intermediate crude futures advanced to around $93.70 a barrel, and the 10-year Treasury yield held flat at 4.78%. Bitcoin, meanwhile, fell to roughly $78,400.
U.S. and Iran trade attacks over the weekend
Over the weekend, the U.S. hit three Iranian oil tankers after Iran launched ballistic missiles toward two Navy warships, including an aircraft carrier, according to U.S. Central Command. In retaliation, Iran said it targeted three other oil tankers for using what it claimed was an unauthorized route through the Strait of Hormuz; it also attacked several U.S.-linked ships, though it remains unclear if any vessels were hit.
Chevron gains, Apple slides among Dow movers
Chevron benefited from higher oil prices, with shares climbing 1% premarket Tuesday as the stock set out to snap a three-day losing streak. Nvidia gained nearly 1% Tuesday morning, on pace to extend a winning streak to four sessions.
By contrast, Merck and Apple each lost nearly 1% in early morning action. Apple shares threatened to add to Friday's 2.5% sell-off, though the stock was trying to hold above its 50-day moving average.
Earnings and inflation data loom
The June-quarter earnings season winds down this week, with Oracle and Adobe due to report after Thursday's close. Oracle shares jumped nearly 5% premarket Tuesday, even after closing Friday more than 54% off their 52-week high. Adobe stock instead declined 1.5% in early trading, threatening to add to Friday's 6.7% dive.
Friday's August consumer price index is the week's key economic release. Economists expect core CPI, which strips out food and energy, to rise 0.2%, according to FactSet. Together with Thursday's producer price index, the data will show whether disinflation continued last month, which may be needed to avoid a rate hike at the Fed's Sept. 16 policy meeting. A Treasury bond buyback scheduled for Thursday will also be watched, with long-term yields at 2026 highs; Treasury has said it will buy back at least $4 billion of 10-year to 30-year bonds.
Source: Investor's Business Daily
Trading involves risk.
Risk Disclaimer
