Key facts
- Wall Street indexes opened mixed on Tuesday.
- Middle East tensions drove oil prices to a six-week high.
- The Dow Jones Industrial Average and S&P 500 opened lower, while the Nasdaq Composite opened higher.
- Brent crude futures reached $98.59 a barrel, and U.S. crude surged to $93.79.
- Markets are awaiting key inflation data (CPI and PPI) due later in the week.
- The Federal Reserve's next interest rate decision is influenced by inflation readings and a strong job market.
Wall Street's major indexes were mixed in early trading on Tuesday as escalating tensions in the Middle East propelled oil prices to their highest level in over six weeks. The Dow Jones Industrial Average and the S&P 500 opened lower, while the Nasdaq Composite saw a slight gain.
Fresh hostilities in the region, including Houthi attacks on Saudi energy facilities and Israeli strikes in Lebanon, have heightened concerns about wider conflict and disrupted shipping traffic through the Strait of Hormuz. Brent crude futures climbed 1.64% to $98.59 a barrel, and U.S. crude surged 2.5% to $93.79 a barrel.
Investors are closely watching for inflation data, with the Producer Price Index due Thursday and the Consumer Price Index on Friday. These readings are expected to be crucial for the Federal Reserve's upcoming interest rate decision, especially given recent commentary from Fed Governor Christopher Waller and a stronger-than-expected jobs report. Traders currently see a 60.6% chance of an interest rate increase this month.
Energy stocks showed strength in premarket trading, with Marathon Petroleum and Occidental Petroleum rising. Conversely, crypto stocks like Coinbase and MicroStrategy fell as bitcoin retreated, while chipmakers such as Intel and Nvidia saw gains amid optimism surrounding AI.
In international markets, Asian shares were mixed. Tokyo's Nikkei 225 gave up early gains, sinking 1.7%, while South Korea's Kospi fell 0.6%. Hong Kong's Hang Seng lost 0.4%, and the Shanghai Composite edged 0.2% higher. China reported a 25% year-on-year increase in exports for August.