Key facts
- U.S. stock indexes opened lower on Monday.
- Military strikes between the U.S. and Iran caused oil prices to surge.
- Oil prices reached nearly $100 per barrel.
- Heightened Middle East tensions fueled inflation worries.
- Traders increased expectations for a U.S. interest rate hike.
Wall Street's main stock indexes opened lower on Monday following military strikes between the U.S. and Iran, which sent oil prices soaring to nearly $100 a barrel. The surge in oil prices fueled inflation worries and led traders to reduce expectations for U.S. interest rate cuts. Fed Chair Kevin Warsh's hawkish remarks further contributed to these concerns, with traders seeing a greater than 60% chance of a rate hike at the Fed's September meeting. At the open, the Dow Jones Industrial Average had fallen 0.18%, the S&P 500 declined 0.18%, and the Nasdaq Composite dropped 0.17%. The heightened tensions in the Middle East are a primary driver for the market's cautious opening, as investors weigh the potential impact on global energy supplies and inflation.