1 week ago
Wall Street Futures Slip as Tech Rout, Iran Tensions Weigh
US stock market futures moved lower on Monday.
Technology and chip companies led the declines.
Investors were also worried about tensions between the United States and Iran.
Higher government bond yields made investors more cautious because they can slow the economy and reduce the value of investments.
The 30-year US Treasury yield recently reached 5.3%, its highest level in almost 20 years.
The United States said it would introduce new financial pressure on Iran.
Iran warned that it would respond harshly to expanded sanctions.
Oil prices fell after rising strongly the previous week.
Investors are waiting for comments on interest rates and new US inflation data later this week.
US stock futures fell on Monday, August 24, led by declines in technology and chip stocks.
Dow futures slipped 11 points, while S&P 500 and Nasdaq-100 futures fell 0.1% and 0.5%.
The 30-year US Treasury yield reached 5.3% last week, its highest level in nearly 20 years.
Scott Bessent said the US would launch major new financial measures against Iran, potentially affecting countries including China.
Brent crude fell 4% to $90.30 per barrel, while WTI declined more than 3% to $84.79.
- Who
- US investors, the US government led by Treasury Secretary Scott Bessent, Iran, and Federal Reserve officials.
- What
- US stock futures declined as technology stocks weakened, bond yields stayed elevated, and Iran-related tensions affected markets.
- Where
- US financial markets, with the geopolitical tensions involving Iran and the Strait of Hormuz.
- When
- Monday, August 24; further market-moving comments and inflation data are expected later in the week.
- Why
- Investors were concerned about high bond yields, persistent inflation, possible disruption to oil shipments, and expanded US sanctions against Iran.
Washington's Position
Tehran's Position
Expanded sanctions
Washington's Position
The United States says new financial measures will increase pressure on Iran and encourage negotiations over the conflict, its nuclear programme, and control of the Strait of Hormuz.
Tehran's Position
Iran says additional sanctions will not bring peace and has warned that it will respond harshly, including to measures targeting countries cooperating with Washington.
Pressure on shipping
Washington's Position
Washington is escalating economic pressure after military strikes and a naval blockade reportedly failed to force Tehran to capitulate.
Tehran's Position
Iran reportedly blacklisted 45 tankers accused of violating its Strait of Hormuz rules and threatened action against vessels transferring cargo to or from them.
Key facts
- Dow futures
- Down 11 points on Monday
- S&P 500 futures
- Down 0.1%
- Nasdaq-100 futures
- Down 0.5%
- 30-year US Treasury yield
- Reached 5.3% last week, its highest level in nearly 20 years
- Brent crude
- Down 4% to $90.30 per barrel
- WTI crude
- Down more than 3% to $84.79 per barrel
- Upcoming inflation data
- The US July personal consumption expenditures report is due Wednesday
Sources
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