ASX set to retreat as Wall Street slides; Oil prices climb after US strike on Iranian sites
The price of oil rose and stocks fell on Wall Street after the US launched its first military action in a month against Iran.
US stocks declined on Monday as oil prices surged, reigniting inflation concerns and signaling potential tighter monetary policy. The Dow Jones Industrial Average slipped 0.70% to 53,185.90, the S&P 500 fell 0.33% to 7,686.14, and the Nasdaq Composite dropped 0.12% to 26,370.89. Despite broad market weakness, all three major indexes still managed monthly gains.
The Nasdaq led the way with the largest percentage increase for August, driven by continued interest in the AI sector. Fed Chair Kevin Warsh's hawkish remarks at the Jackson Hole Symposium heightened concerns about a potential September rate hike. Oil prices spiked due to ongoing tensions in the Middle East, particularly with Iran seeking a negotiated solution to the conflict and the subsequent closure of the Strait of Hormuz.
This led to heightened fears of energy price inflation, which could prompt the Federal Reserve to raise interest rates as early as next month. The energy sector saw the most significant gains, while utilities faced a setback due to a California Senate amendment addressing wildfire liabilities. GameStop experienced a 2.9% rise after announcing a debt exchange, while PG&E declined 20.1%, marking its largest percentage loss in over six years.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 3 other outlets
- Wall Street closes lower as oil prices jump freemalaysiatoday.com
- ASX set to retreat as Wall Street slides; Oil prices climb after US strike on Iranian sites theage.com.au
- Oil prices climb over 2% at close on geopolitical tensions english.ajel.sa
