Middle East Tensions Send US Stock Futures Plummeting Amid Inflation Fears
US stock futures dropped on Monday as tensions in the Middle East escalated, driving up oil prices and stoking inflation fears. The losses were fueled by a hawkish stance from Federal Reserve Chair Kevin Warsh, who suggested that interest rates may need to be increased if inflation doesn't ease to the central bank's 2% target.
Warsh's comments came after mixed data in recent weeks, including a consumer inflation report that showed price pressures were mild but the Personal Consumption Expenditures reading was hotter than expected. The ambiguity has raised the stakes for the upcoming US employment report on September 4.
Nvidia rose 0.64% in premarket trading as the only gainer among the Magnificent Seven stocks, while other chipmakers such as Intel and Lam Research also gained ground. Energy stocks were boosted by a nearly 6% jump in Brent crude, with Halliburton and Valero Energy climbing 2.29% and 1.91%, respectively.
Most crypto assets were higher, with bitcoin holding above $78,000. However, GameStop's shares slipped 2% after the video game retailer announced plans to close stores and divest its French business.