U.S. forces hit two Iranian rocket launchers on Larak Island in the Strait of Hormuz early Monday, a move that reignited geopolitical tension and sent U.S. stock futures lower.
Futures and Asian markets react
Dow Jones Industrial Average futures dropped 155 points, a 0.29% decline. The S&P 500 futures slipped 0.36%, while Nasdaq‑100 futures fell 0.40%. In Asian trading, the impact was felt across major indices. South Korea’s Kospi trimmed earlier losses to close down 0.52%, Japan’s Nikkei 225 fell 0.57%, Hong Kong’s Hang Seng slipped 0.71%, and China’s CSI 300 slid 0.81%. Australia’s S&P/ASX 200 was also weaker, down 0.26%.
Wall Street’s month‑long rally continues
Despite the morning dip, Wall Street is poised to end August with solid gains. The Dow is up roughly 2.1% for the month, putting it on track for a fifth consecutive monthly advance. The S&P 500 and Nasdaq Composite are each headed for their first monthly increases since May, up about 3% and 4% respectively. Both the S&P 500 and the Dow reached all‑time highs earlier in the month.
Technology stocks have been the primary engine of the rally. The S&P 500’s tech sector is up nearly 6% in August, buoyed by artificial‑intelligence‑related equities. Nvidia shares have risen more than 8% this month, while Microsoft and Micron Technology posted gains of 11% and 13% respectively.
Inflation worries and policy signals
August has also been marked by heightened inflation concerns that pushed Treasury yields to multi‑year peaks. The Treasury Department attempted to calm the market by announcing an increase in debt repurchases, yet yields on the long end of the curve stayed elevated.
Federal Reserve Chairman Kevin Warsh warned on Friday that, although recent inflation readings were better than expected, they do not indicate a meaningful improvement in underlying trends. His remarks, noted as “hawkish,” suggest a higher likelihood of a 25‑basis‑point rate hike in September, according to Barclays economist Jonathan Millar.
Oil prices climb and upcoming data
Crude prices reacted sharply to the Larak Island strike. U.S. crude futures rose 2.1% to $85.14 a barrel, while Brent futures increased 2% to $89.90 a barrel.
Investors will look to key economic releases later in the week for further guidance. The August jobs report is slated for Friday morning, and monthly manufacturing and services data are also on the calendar.
Overall, the market’s short‑term volatility reflects a blend of geopolitical risk, inflation pressure and a strong underlying earnings narrative driven by technology and AI‑related firms.
Helene Elliott is the senior reporter for News Raise. She covers Science news. She also has a keen interest in photojournalism. Helene holds a nomination for the prestigious Red Smith Award. She is married to author Dennis D’Agostino, a former publicist with the New York Mets.
