Asian shares are mostly higher while US futures and oil prices hold steady

U.S. stocks closed higher on Monday, with oil prices contributing to pressure on inflation and financial markets. The S&P 500 fell 0.5% but remained close to its all-time high set earlier in the week. The Dow Jones Industrial Average dropped 272 points, and the Nasdaq composite slipped 0.3%. Rising oil prices, particularly Brent crude, surged 2.7% to $90.87 per barrel, oscillating due to uncertainty surrounding the Iran conflict and potential impact on oil flow.

This caused Treasury yields to rise, heightening concerns about the economy and investment prices. The 10-year Treasury yield climbed to 4.72% from 4.68%, up from 3.97% before the Iran war. Higher rates aim to curb inflation, but also slow down the economy. Long-term U.S. mortgage rates have surged to near their yearly peak due to the increase in the 10-year Treasury yield.

Fed Chair Kevin Warsh may provide minimal guidance on interest rates during the Jackson Hole economic symposium. Despite high inflation, U.S. company profits have boomed, leading to S&P 500 growth of around 50% for earnings per share in the spring, the best since 2018. Major retailers face pressure due to potential income instability and rising bills from higher inflation.

On Wall Street, trading was relatively quiet, with L3Harris Technologies falling 4.6% after its CEO stepped down amid unspecified conduct. Alphabet and homebuilders experienced slight declines, while Berkshire Hathaway boosted its investment in Google and sold its stake in wine producer Robert Mondavi.