U.S. stock futures gained early Monday, even as rising tensions between Israel and Iran lifted oil prices and sparked fresh concerns about the global economy. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.53%, 0.41%, and 0.49%, respectively, at 4:20 a.m. EST, June 16.
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Traders have been closely monitoring the Middle East following Israel’s strike on Iran last week. As tensions in the Middle East rose following Iran’s missile strikes, the Dow was down 1.79% in Friday’s session. Also, all three major indices ended the week with losses. The Dow was down 1.3% for the week, while the S&P 500 slipped 0.4%, and the Nasdaq lost 0.6%.
The attacks went on over the weekend, with both countries hitting each other’s energy sites. This could add more pressure to the world economy and markets in the new week. Iran also said it may close the Strait of Hormuz, a key route for global oil trade.
As a result, oil prices jumped after Israel’s attack, with WTI crude oil futures trending higher, hovering near $73.08 per barrel as of the last check.
On the economic front, investors will keep an eye on new manufacturing data coming Monday morning, ahead of the Fed’s interest rate decision on Wednesday. Most expect the Fed to keep rates steady, even though President Donald Trump is pushing for a rate cut. Rising oil prices due to Middle East tensions make it even less likely that the Fed will lower rates soon.
This week’s corporate earnings lineup includes major players, such as Digital Turbine (APPS), Jabil (JBL), Kroger Company (KR), and Accenture (ACN), among others.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.45%. At the same time, the Gold Spot U.S. Dollar Price slightly fell to nearly $3,413 per ounce on Monday, weighed down by a stronger dollar. Still, gold stayed strong as growing tensions between Israel and Iran pushed more investors to seek safer options.
Elsewhere, European stock markets moved higher on Monday, breaking a five-day losing streak. Still, investors stayed cautious as they kept a close eye on rising tensions between Israel and Iran.
Asia-Pacific Markets Ended Higher Today
Asia-Pacific indices moved higher on Monday as investors weighed growing tensions between Israel and Iran and looked through a slew of new data from China.
Hong Kong’s Hang Seng Index was up 0.79%. Further, Japan’s Nikkei and Topix indices gained 1.26% and 0.75%, respectively. At the same time, China’s Shanghai Composite and Shenzhen Component indices closed higher by 0.35% and 0.41%, respectively.
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