Dow futures slump; Middle East conflict add to concerns
Investing.com -- U.S. stock futures slumped Monday as the escalating conflict between Israel and Hamas added geopolitical risk to concerns over elevated inflation and rising interest rates.
The main indices on Wall Street closed last week on a high, as investors closed out short positions in the wake of a stronger than expected monthly employment report.However, this positive tone has disappeared after the Israeli-Palestinian conflict escalated to full-blown war over the weekend, as Islamist group Hamas launched an assault on Israel, triggering violent conflict that left hundreds dead.
This resulted in oil prices surging, rebounding from a drop last week, as the strife deepened political uncertainty in the Middle East and exacerbated supply fears. This has fueled concerns that a prolonged crude rally will add to inflationary pressures, which could force central banks around the world to leave borrowing costs higher for a longer period of time.Wall Street was already in a delicate state as investors contended with twin worries over inflation and elevated interest rates.
August’s CPI report showed the fastest increase in 14 months as the cost of gasoline surged, although core inflation, which excludes food and fuel costs rose at the slowest pace in nearly two years.Additionally, the Wall Street Journal reported that Nelson Peltz's Trian Fund Management is expected to request multiple seats on the board of WaltWe encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other.
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