Stock futures fall after US strikes Iran, ending month-long lull — Quartz

RESOLVING THE LEDGER

Stock futures fall after US strikes Iran, ending month-long lull — Quartz | AIPROPX

Stock futures edged lower on Monday after the United States struck Iranian rocket launchers over the weekend, ending a roughly month-long pause in hostilities and pushing oil prices sharply higher.

At 5:10 a.m. ET, Dow Jones Industrial Average futures had lost roughly 64 points, or 0.12%. S&P 500 futures dipped 0.1%, and Nasdaq $NDAQ 100 futures ticked down slightly.

U.S. Central Command acknowledged Sunday that American forces had hit a pair of rocket launchers located on Iran's Larak Island, according to CNBC . It was the first publicly acknowledged U.S. attack on Iranian positions since late July. Iranian state media reported that Tehran responded by attacking U.S. bases in Jordan, according to CNBC.

The renewed confrontation sent oil prices sharply higher. U.S. West Texas Intermediate crude was trading at $86.25 a barrel, a gain of 3.4%, while Brent crude futures added 3.6% to reach $91.24 a barrel.

Despite the early pressure, U.S. indexes remain on track to close August in positive territory. The Dow has gained 2.1% so far in August, which would make it five monthly wins in a row. The S&P 500 and Nasdaq Composite were each poised to snap a losing streak, logging their first monthly gains since May at roughly 3% and 4%, respectively. Earlier in the month, both the S&P 500 and the Dow notched record closes.

Technology stocks led the month's gains. Within the S&P 500, technology shares were up nearly 6% for the month; Nvidia $NVDA surged more than 8%, and Microsoft $MSFT and Micron $MU Technology posted gains of 11% and 13%, respectively.

August was not without turbulence. Rising inflation fears pushed Treasury yields to multiyear highs, and Federal Reserve Chairman Kevin Warsh cautioned on Friday that, even though this summer's inflation data came in better than anticipated, it has not convinced him that the broader trend is improving. In a research note cited by CNBC, Barclays economist Jonathan Millar said Warsh's hawkish tone makes a quarter-point hike at the September meeting the most probable outcome, with the bank's baseline scenario penciling in a second increase in December.

Asian equity markets were a mixed picture: Tokyo's Nikkei 225 slipped 0.14%, Seoul's Kospi added 0.46%, and mainland China's CSI 300 edged up 0.35%, while Australia's S&P/ASX 200 lost 0.18%. In Europe, the broad Stoxx 600 index hovered fractionally below the unchanged mark, with London sidelined by a public holiday.

Investors will get a clearer read on the economy later this week. Economists surveyed ahead of Friday's report anticipate that August payrolls grew by 50,000 after employers shed 23,000 jobs in July, according to The Wall Street Journal . Reports on activity in the manufacturing and services sectors are also scheduled for release this week.