US stock futures edged lower on Monday as oil prices surged after the US military struck Iranian rocket launchers that were preparing to deploy mines in the Strait of Hormuz, the first such operation in more than a month. Markets also reacted to hawkish comments from Federal Reserve Chair Kevin Warsh, who reaffirmed his determination to bring inflation down, reinforcing expectations for a possible interest rate increase in September.
Despite Monday’s pullback in futures, the Dow is up 2.05% so far in August and remains on course for a fifth consecutive monthly gain. The S&P 500 and Nasdaq Composite have climbed 2.96% and 4.05%, respectively, this month, buoyed in particular by strength in technology shares.
Investors are now focused on Friday’s August jobs report for additional insight into the underlying health of the US economy. On the corporate side, earnings results are due this week from Broadcom, Dell, Palo Alto Networks, Snowflake, and others.
