U.S. stock futures dip as inflation reports and Iran uncertainty loom
Dow and S&P 500 futures edged lower Sunday ahead of July inflation data as fresh doubts surrounded a Strait of Hormuz reopening.
By Frankie Delgado · News Reporter
3 min read
U.S. stock futures inflation data was front of mind Sunday as Wall Street looked ahead to this week’s reports while uncertainty over Iran and shipping through the Strait of Hormuz persisted. Dow futures fell about 110 points, or 0.2%, while S&P 500 futures slipped about 0.1%; Nasdaq-100 futures added about 0.1%, MarketWatch reported at 7:40 p.m. Eastern.
Those were Sunday-session figures, not current prices. The mixed, modest moves followed Wall Street’s strongest week in four months.
When are the July inflation reports due?
July’s Consumer Price Index is due Wednesday. The Producer Price Index follows Thursday, with the Bureau of Labor Statistics scheduling its July PPI release for Aug. 13 at 8:30 a.m. Eastern.
The reports arrive as inflation remains a central concern for the Federal Reserve, according to MarketWatch. The outlet said investors expected the CPI figures to reflect higher oil prices in late July after a ceasefire deal involving the U.S. and Iran fell apart.
PPI tracks average changes over time in prices domestic producers receive for their output, according to the BLS. CPI and PPI measure prices from different perspectives: CPI from the purchaser’s side and PPI from the seller’s side, the agency says.
Why is the Strait of Hormuz back in focus?
Iran had indicated it was near an arrangement with Oman on managing shipping traffic through the Strait of Hormuz, MarketWatch reported. The waterway has been largely shut since fighting began in late February, constraining global oil supplies, according to the report.
But Iran on Saturday sought billions of dollars in compensation from the U.S., a withdrawal of U.S. troops from the region and an end to a U.S. naval blockade on Iranian ports before the strait could fully reopen, the Associated Press reported. MarketWatch said there was no immediate White House comment.
Oil ticked up alongside the renewed uncertainty. U.S. benchmark West Texas Intermediate crude traded near $79 a barrel, up about 0.7% Sunday, after ending Friday at $78.18. Brent crude rose about 1%, MarketWatch said.
That rebound came after a steep reversal the week before: WTI had fallen more than 11% on optimism for a new U.S.-Iran ceasefire agreement, according to the report.
A record close, then a quieter futures session
The S&P 500 finished Friday at a record high. Across the prior week, the index rose 3.6%, the Dow gained 3% and the Nasdaq climbed 5.2%, MarketWatch reported.
The report attributed the rally in part to a weaker-than-expected jobs report, which it said reduced worries about an imminent interest-rate increase. Sunday’s futures market was mixed to modestly lower as investors awaited the inflation releases and monitored developments around Hormuz.
This story draws on original reporting from MarketWatch.