US Stock Market Cautious Ahead Amidst Iran Tensions and Rate Hike Fears
The US stock market experienced volatility last week, with the Dow Jones index falling by 0.51% to close at 53,414.25.
Meanwhile, the Nasdaq Composite and S&P 500 indices rose, but were overshadowed by concerns of monetary policy tightening and rate hikes this month from the US Federal Reserve.
Nathan Peterson, Director of Derivatives Research and Strategy for the Schwab Center for Financial Research, attributed the decline in oil prices to the escalation of Iran strikes on commercial shipping in the Strait of Hormuz, resulting in higher crude oil prices and yields.
The upcoming week will be holiday-shortened due to Labor Day celebrations across the states, with a cautious outlook predicted by Nathan Peterson due to potential rate hikes from the Federal Reserve weighing on equity risk appetite.