Pre-Market Update: Stock Futures Drop as U.S.-Iran Strikes and Fed Rate Hike Fears Rattle Stock Markets

TLDR

• U.S. forces struck Iranian rocket launchers in the Strait of Hormuz, pushing oil prices up over 2%
• Fed Chair Kevin Warsh’s Jackson Hole speech raised fears of near-term rate hikes
• Probability of a September Fed rate hike jumped to around 57-60%
• Dow futures fell 85 points, with S&P 500 and Nasdaq also down 0.2% in premarket
• Bond yields hit multi-year highs in Japan and Germany as inflation concerns spread globally

U.S. stock futures dropped Monday morning as a combination of military escalation in the Middle East and a hawkish Federal Reserve rattled investor confidence heading into the final day of August.

Dow futures fell 85 points, or 0.2%. S&P 500 and Nasdaq futures each dropped 0.2% in premarket trading.

Oil Prices Spike After U.S. Strikes on Iran

U.S. forces struck two Iranian rocket launchers on Larak Island in the Strait of Hormuz on Sunday. Iran responded by attacking U.S. forces in Jordan and claimed to have hit a tanker in the shipping lane.

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