Wall Street indexes open lower as oil rallies
SPY•Wall Street opens lower as oil climbs
Wall Street's three major equity indexes started the week off with a lower open as oil prices climbed after the U.S. and Iran resumed military attacks against each other, fanning concerns about inflation and potential interest rate hikes.
Oil futures were up more than 2% after the U.S. attacked an Iranian island in the Strait of Hormuz and Tehran said it had retaliated, the latest moves a six-month-old conflict, which has disrupted energy shipments though the crucial waterway.
The attacks come days after Federal Reserve Chair Kevin Warsh said that policymakers may need to increase borrowing costs if inflation does not ease to the central bank's 2% target.
On Monday, traders were pricing in a 63.4% probability for a September rate hike of 25 basis points up from 57% in in the last session, according to CME Group's FedWatch tool.
Among the S&P 500's 11 major industry indexes, energy .SPNY was the sole gainer, up more than 2%, while utilities .SPLRCU led losses, down 1.7%.
Here is your early trading snapshot from 9:41 a.m. ET (1341 GMT):
- Wall Street indexes dip; Dow leads losses, off 0.5%
- Utilities lead S&P 500 sector losses, energy is sole gainer
- STOXX 600 down 0.3%
- Dollar dips, U.S. crude up ~2.8%, gold slips, bitcoin off ~0.6%
- U.S. 10-year Treasury yields rise to ~4.75%
