S&P 500 down today: oil rises and US inflation comes into focus for the market.
- S&P 500 falls amid tensions between the US and Iran.
- PCE inflation could affect interest rates and Bitcoin.
- Oil prices surge, increasing caution in the markets.
Financial markets started the week lower, with futures on major US stock exchanges registering losses as investors monitor developments in tensions between the US and Iran and await new inflation data that could influence the Federal Reserve's next steps.
Futures contracts linked to the S&P 500 fell 0,50%, trading at 7.533,25 points. Dow Jones futures declined 0,37% to 51.817 points, while Nasdaq contracts registered a drop of 0,49%, to 30.568 points.
The selling pressure also affected smaller capitalization companies. Russell 2000 futures were down 0,77%, trading at 2.976,80 points.
At the same time, the VIX index, often used as a barometer of volatility on Wall Street, rose 2,32%, reaching 16,78 points. The increase in the indicator demonstrated greater caution among investors in the face of geopolitical and economic uncertainties.
In commodity markets, oil continued its strong upward trend. West Texas Intermediate (WTI) crude oil rose nearly 3%, trading near $78 a barrel. Brent crude surpassed $81 a barrel, as traders assessed potential impacts on global energy supply.
The commodity's price increased following new statements from the current US president, Donald Trump. The president warned Iran about the possibility of further military action if Tehran does not take measures to contain allied groups operating in Lebanon.
Meanwhile, diplomatic efforts continue. Vice President JD Vance initiated a new round of negotiations with Iranian representatives in Switzerland in an attempt to reduce tensions and prevent an escalation of conflict in the region.
In addition to geopolitics, the market is focused on the release of the Consumer Price Index (PCE), scheduled for Thursday. This indicator is considered the main measure of inflation monitored by the Federal Reserve and may provide new signals about the trajectory of interest rates in the United States.
Economists expect a slight acceleration in core PCE, which excludes food and energy. This data gains relevance after recent tighter signals from the Federal Reserve, leading investors to revise their expectations for monetary policy.
The cryptocurrency market is also closely monitoring the numbers. Bitcoin was trading near $64.014, down 0,29% during the session. Inflation data exceeding projections may reduce expectations of interest rate cuts, a factor that usually influences the performance of risk assets, including Bitcoin and other cryptocurrencies.
With rising oil prices, caution on Wall Street, and anticipation for the release of inflation figures, investors are monitoring a combination of factors that could influence global markets over the next few days.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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