Dow Jones futures open Sunday evening alongside S&P 500 and Nasdaq futures as U.S. and Iran traded fresh attacks over the weekend. An Apple iPhone event and two key August inflation reports headline the coming week, with markets already leaning toward a Sept. 16 rate hike.
Dow Jones futures, along with S&P 500 futures and Nasdaq-100 futures, open at 6 p.m. ET Sunday, with U.S. markets shut Monday for the Labor Day holiday. Overnight futures action doesn't necessarily carry over into the next regular session.
Stock market rebounds after a mixed week
The Dow Jones Industrial Average fell 0.3% last week, while the S&P 500 edged up 0.1% and the Nasdaq composite rose 4%. The small-cap Russell 2000 inched 0.1% higher. Despite the mixed finish, the major indexes rebounded back above their 21-day moving averages after a difficult start to the week.
That rebound came even as oil prices surged and Treasury yields hit fresh long-term highs. Continued whipsaw sector rotation is still making it hard to buy and hold, according to the report.
U.S., Iran exchange attacks
The U.S. hit three Iranian oil tankers on Saturday after Iran launched ballistic missiles toward two Navy warships, including an aircraft carrier, according to U.S. Central Command. Iran, in retaliation, said late Saturday it targeted three oil tankers for using what it called an unauthorized route through the Strait of Hormuz, and it also attacked several U.S.-linked ships. It remains unclear if any of the vessels were hit.
Oil prices had already surged over the past month, and U.S. crude oil futures rose 9.7% to $91.48 a barrel for the week. OPEC+ left production quotas unchanged for October after completing a slow reversal of prior cuts, though actual output remains below quotas because of the U.S.-Iran and Russia-Ukraine conflicts.
Inflation reports could decide the Fed's next move
The 10-year Treasury yield rose six basis points to 4.78% last week, hitting fresh 19-month highs. Markets are leaning toward a Sept. 16 rate hike after Friday's strong jobs report. The August PPI and CPI inflation reports due Sept. 10-11 will likely be decisive.
Apple event adds to the week's catalysts
Apple will hold its "Surprise and Shine" event Wednesday at 10 a.m. PT, the first major keynote led by John Ternus as the company's CEO. The Dow component is widely expected to unveil its first foldable iPhone, though reports on Friday said production of the foldable handsets has been very slow because of manufacturing problems. Apple stock fell 2.5% to 319.97 on Friday, paring its weekly gain to 0.1%.
Source: Investor's Business Daily
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