Newswire (ASIa‑Pacific) News: US stock index futures were broadly flat on Sunday local time (August 16). Wall Street wrapped up a relatively quiet week as investors awaited further signals from the Federal Reserve regarding the interest‑rate outlook.
As of Sunday evening, Dow Jones Industrial Average futures fell roughly 80 points, a loss of around 0.1%; S&P 500 futures edged higher; Nasdaq 100 futures rose about 0.2%. Bitcoin traded above $63,000, down approximately 3% over the past week.
In crude‑oil markets, WTI crude dipped intraday before staging a rebound. The Wall Street Journal reported that Iran has been secretly preparing to escalate military operations targeting the United States and its PeRSIan‑Gulf allies. WTI crude was recently up around 0.6%, near $83 per barrel. Global benchmark Brent crude also advanced, settling at $88.52 per barrel last Friday.
Reports state an oil tanker was attacked while transiting the Strait of Hormuz on Saturday, while negotiations between the United States and Iran aimed at ending hostilities have hit an impasse. #Iran‑Crisis‑Tracking#
Despite the standoff, oil prices remain well below earlier highs this year. Experts attribute this partly to weaker global demand and the buffer created by strategic petroleum reserve releases.
Oxford Economics analysts previously stated they expect this “stop‑and‑go” traffic pattern through the Strait of Hormuz to peRSIst for the foreseeable future, projecting Brent crude to trade mostly in the mid‑$80s by year‑end.
U.S. equities closed lower last Friday, yet Wall Street posted an overall strong weekly performance. The S&P 500 gained 0.4% for the week, notching fresh all‑time highs. Tech‑heavy Nasdaq Composite rose 0.1%, while the Dow Jones Industrial Average slipped 0.6% week‑on‑week.
The yield on the US 10‑year Treasury note climbed 3.8 bASIs points last week to 4.695%.
Focus Falls on Fed Minutes
The week ahead looks relatively light with no major economic data scheduled. Even so, investors will closely watch Wednesday’s release of last month’s FOMC meeting minutes for insight into how Fed officials assess inflation and the interest‑rate backdrop.
U.S. inflation has stubbornly run above the Fed’s 2% target for years, though July’s consumer‑price index released last week showed only modest increases.
At the same time, markets are growing concerned that massive artificial‑intelligence‑driven infrastructure build‑out is pushing up costs across sectors ranging from raw materials to consumer electronics.
For investors tracking Fed policy, the next key milestone is August 27, when the Federal Reserve holds its annual economic symposium in Jackson Hole, Wyoming.
Since current Fed Chair Kevin Warsh favors less forward guidance compared to his predecessor Jerome Powell, investors may parse limited policy communications more carefully than in prior cycles.
Stephen Innes, Managing Partner at SPI Asset Management, wrote in a weekend note: “Warsh has effectively told markets to interpret macro data themselves. That means every major economic print between now and Jackson Hole acts as a vote for whether the tightening cycle is merely delayed further or truly nearing its end.”
According to the CME FedWatch Tool as of Sunday, markets price approximately a 33% probability of a Federal Reserve rate hike in September.
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