United States stock futures retreated in Sunday evening trading (Monday AEST) as the U.S. military struck Iranian rocket launchers on Larak Island in the Strait of Hormuz, reigniting concerns over a potential escalation in the Middle East.
By 10:20 am AEST (12:20 am GMT), Dow futures were down 0.3%, S&P 500 futures had slipped 0.4% and Nasdaq-100 futures were 0.6% lower.
Wall Street is on track to finish August with gains, led by the technology sector. The Dow is up 2.1% for the month, while the S&P 500 and Nasdaq Composite have gained 3% and 4%, respectively.
Both the S&P 500 and Dow also reached record highs earlier this month.
August has, however, been a volatile month, with persistent inflation concerns pushing U.S. Treasury yields to multi-year highs.
The Treasury Department sought to ease the bond market sell-off by announcing plans to increase debt repurchases, although longer-term yields remain elevated.
Federal Reserve Chairman Kevin Warsh also expressed concern over inflation on Friday, saying, “while this summer's PCE and CPI readings were better than expected, they do not tell me that underlying trends have meaningfully improved”.
Investors will receive further insight into the health of the U.S. economy this week, with the August jobs report due on Friday morning. Manufacturing and services sector data are also scheduled for release.
