Oil Prices Surge Amid Middle East Tensions
The S&P 500 and Dow indexes are poised to open lower on Tuesday due to rising tensions in the Middle East, which have pushed oil prices to a six-week high. Brent crude futures rose 1.64% to $98.59 a barrel, their highest since July 24.
Investors are bracing for inflation data, with the Consumer Price Index report set to be released on Friday and the Producer Price Index reading scheduled for Thursday. The Federal Reserve's focus on bringing prices down has led some investors to believe that inflation readings will hold more weight in determining rate trajectory.
Michael Matousek, head trader at U.S. Global Investors, noted that Chair Kevin Warsh is 'not as easily readable' as his predecessor Jerome Powell was. With oil potentially climbing further, market volatility could persist.