Commodities
US-Iran Clashes Send Wall Street Futures Plummeting
Wall Street futures took a hit on Wednesday as tensions in the Middle East escalated following US-Iran clashes. Oil prices and Treasury yields rose, making it less appealing to buy stocks during what's typically a weak month for returns.
The latest strikes have pushed geopolitical tensions back into focus, reviving inflation concerns. According to Ryan Isherwood, founder and CEO of Significance Capital, the Iranians have their maximum leverage before the midterm elections, which could increase hostilities within the next couple of weeks.
Markets are pricing in a 68% chance of a rate hike in September, up from around 37% a week ago. However, Isherwood believes that a hike right before the election is unlikely.