U.S. Stocks Face Lower Open Amid Renewed Trade Tensions
Stocks are pointing to a lower open Monday amid renewed trade tensions and concerns over their impact. The VIX is elevated but remains relatively low at 15.9. The dollar has found its footing, trading near $98.93. Treasuries are mixed, with 2-year yields rising to 4.245% while long-term yields have fallen slightly.
Crude oil is down about 1.2% and Brent is off by 3.2%. The agriculture sector is mixed, but corn prices have surged higher following a lower-than-expected yield estimate from the Pro Farmer Crop Tour. The tour's national corn yield estimate came in at 173.2 bushels per acre, below USDA's August estimate of 180.7.
U.S. Treasury Secretary Scott Bessent has published an op-ed in the Financial Times warning that economic pressure on Iran is about to increase. He stated that the U.S. aims to 'sever every economic lifeline' that sustains the Iranian regime, suggesting potential secondary sanctions or targeted measures may be used against third-party nations doing business with Iran.
Talks between the U.S. and Canada have broken down over trade, leading to threatened 50% tariffs on $20 billion of Canadian imports. The two sides have agreed to give each other 15 days to reach a new agreement before further escalation.