How Are The US Futures Faring?
Futures on the Dow Jones fell as much as 250 points and are now down around 200 points, while those linked to the S&P 500 and Nasdaq are down 20 and 60 points respectively.
The losses come on the back of a sharp sell-off on Wall Street last Friday, with the Nasdaq dropping over 4% and the Dow Jones declining over 700 points.
A strong jobs report, which blew past estimates, put to rest any hopes of the US Federal Reserve cutting interest rates this year.
The US Federal Reserve is set to meet next week in what would be Kevin Warsh’s first policy as the new Fed Chair.
What Is Happening Between US & Iran?
Bloomberg reported earlier this morning that Israel has identified incoming missiles from Iran, to which Axios reported citing Israeli officials that they will retaliate to the Iranian attacks.
The US Central Command also says it has shot down a pair of Iranian drones threatening the Strait of Hormuz, according to the AFP, while Iran’s state media has quoted the country’s armed forces saying that if Israel responds or continues to attack Lebanon, Iran’s attacks will continue.
According to CNN, Iraq has closed its airspace for the next 72 hours.
US President Donald Trump told Axios that he is calling Israel’s Prime Minister Benjamin Netanyahu right away and telling him not to respond to the Iranian attack, while he told Fox News that his advice to Iran will be “you have fired your missiles. That’s enough. Now get back on to the table and make a deal.”
What Is The Biggest Trigger For US Markets This Week?
Barring the war in Iran, the inflation figures for the month of May are the biggest triggers for Wall Street this week. The CPI inflation data will be reported on Wednesday, while the wholesale inflation figures (PPI) will be reported on Thursday.
Bond traders are already working with the Fed to raise rates at least once this year by December, with the two-year bond yield, synchronous with the Fed expectations, rising to the highest level since February 2025.
How Have Other Asset Classes Reacted?
Crude oil prices are rising in response to the latest escalation between Iran and Israel with Brent crude rising over 3% to cross the mark of $95 a barrel, while the US Crude futures have also gained a similar quantum.
The US Dollar Index has crossed the mark of 100, while the Bitcoin prices have slumped below the mark of $60,000. Gold and Silver prices in the spot market are little changed.