The Dow Jones plunged 374 points! Oil prices surged following clashes between the US and Iran, pressuring stocks and gold, as markets awaited employment figures.
U.S. stock markets closed lower on Monday (August 31, 2569) after oil prices surged due to tensions between the U.S. and Iran, raising investor concerns that inflation and interest rates could remain high for longer. Markets are also watching for U.S. economic data, particularly the August employment figures to be released later this week.
US stock markets plunge! Dow Jones plunges more than 370 points as investors worry about oil and interest rates.
U.S. stock markets closed lower on Monday, with the Dow Jones index falling more than 370 points , after oil prices rose amid renewed tensions between the U.S. and Iran. Investors are also assessing that higher energy prices could increase inflationary pressure and make the Federal Reserve (Fed) more likely to keep interest rates high or raise them.
Market pressure came after the U.S. attacked two Iranian rocket launchers on Larak Island, following reports that Iran was preparing to fire missiles and mines into the Strait of Hormuz. Investors are also watching manufacturing and service sector data, including the August non-farm payroll (NFP) report on Friday.
Despite a market downturn on the last day of the month, the S&P 500 rose 2.6%, the Nasdaq Composite gained 3.9%, and the Dow Jones increased 1.3% throughout August, marking the fifth consecutive month of gains for the Dow Jones index.
- Dow Jones Industrial Average Closed at 53,185.90 points, down 374.09 points (-0.70%)
- S&P 500 Index Closed at 7,686.14 points, down 25.62 points (-0.33%)
- Nasdaq Composite Index Closed at 26,370.89 points, down 31.54 points (-0.12%)
European stock markets closed lower as investors worried about the situation in the Middle East.
European stock markets closed lower on Monday, pressured by renewed tensions between the US and Iran, while rising oil prices fueled concerns about inflation and the global economic outlook.
Investors continue to monitor energy price trends and assess the impact of the situation in the Middle East on oil shipments through the Strait of Hormuz, a key route for global energy transportation.
- STOXX 600 Index Closed at 651.10 points, down 4.06 points (-0.62%)
- DAX German stock market index Closed at 26,258.11 points, down 311.88 points (-1.17%)
- CAC 40 Index of the French stock market Closed at 8,334.50 points, down 66.68 points (-0.79%)
The UK stock market is closed for the summer bank holiday.
The London Stock Exchange was closed on Monday in observance of the Summer Bank Holiday, resulting in no trading and no closing figures for the FTSE 100 index on that day.
Oil prices surge! Brent crude surpasses $90 following clashes between the US and Iran.
Global oil prices surged on Monday after the United States attacked two Iranian rocket launchers on Larak Island, reigniting concerns about oil supply risks, particularly the possibility of disruptions to energy transport through the Strait of Hormuz.
This situation comes after conflicts in the Middle East severely impacted shipping through the Strait of Hormuz, while President Donald Trump extended military threats to Kharg Island, a key oil export hub for Iran.
Oil prices were also supported by concerns about tight global refining capacity following attacks on refineries in the Middle East and Russia, which further limited available refining capacity.
- WTI crude oil price (October delivery) It closed at $85.76 per barrel, up 2.8%.
- Brent crude oil price (October delivery) It closed at $90.49 per barrel, up 2.7%.
Gold prices plunge to their lowest level in nearly two weeks! The Fed's interest rate hike puts pressure on the market.
Global gold prices fell on Monday, hitting their lowest level in nearly two weeks, as investors increased speculation that the Federal Reserve might raise interest rates in September following hawkish remarks from Fed Chair Kevin Warsh. Meanwhile, rising oil prices and tensions between the U.S. and Iran also fueled concerns about inflation.
Spot gold prices fell to around $4,417 per ounce during Asian trading, their lowest level since August 19, before recovering somewhat to close down about 0.4% at $4,433.19 per ounce.
The main pressure came from Warsh's statement signaling that the Fed may need to tighten its policy if there isn't enough confidence that inflation is returning to its 2% target. This led investors to increase their forecast for a September interest rate hike to around 60-64% from around 36% prior to the Jackson Hole statement.
However, despite heavy selling pressure on gold towards the end of the month, spot gold prices still rose by about 9.7% in August and are on track to record their best monthly increase since January.
- Spot Gold Price Closed at $4,433.19/ounce, down 0.4%.
- Gold price on Comex market (December delivery) Closed at $4,481.50/ounce, down 1.1%.
The dollar weakened slightly as investors awaited US employment figures.
The dollar edged slightly lower on Monday as investors awaited U.S. labor market and inflation data ahead of the September 15-16 Fed meeting, particularly the August non-farm payroll report, which will be a key factor in assessing the direction of interest rates.
Investors have increased their expectations that the Fed will raise interest rates in September following hawkish remarks from Warsh. Fed Funds futures estimate the probability of a rate hike at around 64%, up from approximately 35% before his statement.
- Dollar Index The index fell 0.14% to 99.54 after touching 99.73 on Friday, its highest level since August 17, while the euro and pound strengthened against the dollar.
- Euro/Dollar It closed at $1.1616, up 0.3%.
- Pound/Dollar It closed at $1.3547, up 0.1%.
- Dollar/Yen Closed at 159.68 yen, down 0.2%.
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