Strait of Hormuz Concerns Weigh on Markets Ahead of Inflation Data
The global markets are experiencing mixed signals as concerns over the Strait of Hormuz grow and investors await inflation data. The S&P 500 futures edged lower, but Nasdaq-100 futures added 0.2%. Meanwhile, crude oil prices rose 1% to just above $79 a barrel.
Investors are closely watching consumer and producer price index readings due out this week for insights on inflation. However, the recent developments in U.S.-Iran talks have dimmed optimism about a deal to open the critical Hormuz strait, with Iran denying direct negotiations.
Fed funds futures traders now price in a 44% likelihood of a rate hike at the September meeting, down from 67% last week. Treasury yields fell on Friday after data showed the U.S. economy lost 23,000 jobs in July.