Brent crude tops $97 and WTI exceeds $94 after fresh Middle East hostilities, unsettling equity markets ahead of key inflation data.
US stock index futures traded mixed early Monday as oil prices jumped following renewed Iran-Israel strikes. Dow futures fell 0.3%, while S&P 500 futures rose 0.2% and Nasdaq 100 futures gained 0.7%, reflecting a defensive rotation after Friday’s 4% Nasdaq drop and the S&P 500’s first losing week in ten.
The moves follow a stronger-than-expected May jobs report that bolstered expectations for Federal Reserve rate hikes later this year. Investors also digested a sharp pullback in semiconductor stocks, a key driver of the AI trade, amid broader sector rotation.
Brent crude futures climbed over 4% to $97 a barrel, and West Texas Intermediate topped $94 as markets priced in risks of a collapsed ceasefire. Attention now turns to Wednesday’s Consumer Price Index report, which will gauge whether rising energy costs are feeding into core inflation.