Trump Rejects Iranian Ceasefire, Oil Prices Soar
US stocks are pointing to a weaker open on Monday after President Trump rejected an Iranian ceasefire proposal, sending oil prices higher and fuelling inflationary concerns.
The rejection of the offer from Iran has led to a jump in crude oil prices, with the price rising over 3% as of Monday morning. This surge in oil prices has also pushed Treasury yields higher, with the 10-year yield rising above 5.2% on Friday.
Despite strong economic data, including the September flash composite PMI at its strongest level in almost five years, investors are concerned that a prolonged conflict could lead to higher inflation and interest rates. The Fed's preferred gauge for inflation, the US core PCE, is expected this week, as well as Friday's non-farm payroll report.
Nvidia is outperforming a broader sell-off in chip stocks, up 1.5% on Monday after announcing new AI safety software and a $150 billion increase in its stock buyback programme.