Nasdaq futures indicated a marginally lower opening on Monday, coinciding with a spike in oil prices following military strikes exchanged between the U.S. and Iran. S&P 500, Dow Jones Industrial Average, and Nasdaq 100 futures experienced declines of 0.2%, 0.2%, and 0.1%, respectively, in recent trading sessions. Crude oil prices experienced a significant increase on Monday following a statement from U.S. Central Command, or CENTCOM, indicating that U.S. forces had targeted Iranian minelayers deemed to be “posing an imminent threat in the Strait of Hormuz.” In response, Iran launched retaliatory actions against U.S. military installations in Jordan.
U.S. benchmark West Texas Intermediate prices increased by 3.7% to $86.50 a barrel, whereas Brent crude futures, serving as the global benchmark, rose by 3.6% to $91.25. Shares of energy giants Chevron and ExxonMobil rose about 2% before the bell. Stocks concluded last week with gains, despite a retreat on Friday, as Marvell Technology exerted pressure on tech shares and Federal Reserve Chair Kevin Warsh indicated the central bank’s commitment to controlling inflation. As of Monday, the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average had recorded increases of approximately 4%, 3%, and 2%, respectively, for the month of August.
Marvell shares, which declined by 10% on Friday, experienced a further decrease of less than 1% on Monday. In contrast, the iShares Semiconductor ETF rebounded modestly following a decline of over 3% in the previous session. The stock of Nvidia, which fell 4.6% to lead the Dow decliners on Friday, increased by less than 1% during premarket trade. Most of the other Magnificent Seven mega-cap tech stocks were in the red, with Apple ticking lower on Tim Cook’s last day as CEO before he retires and John Ternus takes over. The Roundhill Magnificent Seven ETF was down modestly before the bell.
The yield on the 10-year Treasury note, a key determinant of interest rates across various consumer loans such as mortgages, was approximately 4.73% in recent trading, reflecting an increase of one basis point from Friday’s close. Recently, Bitcoin was down little over the previous day, reaching $78,400. The U.S. dollar index, which tracks the value of the greenback against a basket of foreign currencies, was 0.2% lower at 99.52. Gold futures fell by 0.7%, settling at $4,500 per ounce. Investors later this week will focus on Broadcom’s earnings report Wednesday and the August jobs report on Friday.
