US Stocks Set for Lower Open as Iran Conflict Fuels Rate Hike Speculation

The US stock market is set for a lower opening on Monday following military clashes between the US and Iran, which have driven up oil prices and fueled inflation worries.

This has led to speculation that the Federal Reserve may raise interest rates at its September meeting, with traders seeing a nearly 60% chance of this happening according to the CME FedWatch tool. This is a significant increase from just last week when there was only a 41.4% chance of a rate hike.

The comments made by Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium on Friday have contributed to this increased speculation. Warsh said that policymakers may need to increase borrowing costs if inflation does not ease to the central bank's 2% target.