On Friday, U.S. stock index futures held steady, maintaining gains after the S&P 500 reached a record high the previous day. Investors exhibited caution due to rising crude prices following recent Middle East tensions.
This week, tame inflation readings alleviated fears of a Federal Reserve rate hike in September, pushing the S&P 500 and the Nasdaq toward their third consecutive weekly gains. However, concerns lingered in the Middle East as Strait of Hormuz transit nearly halted after two ship attacks, alongside a potential indefinite U.S. naval blockade of Iran.
Brent crude futures rose by 1%, and investors are now desensitized to geopolitical tensions, according to Rabobank’s Elwin de Groot. Despite stable U.S. inflation reports, central banks remain uncertain about their next steps amid high energy prices. Simultaneously, investors are assessing retail sales data and consumer sentiment for additional economic insights.
(With inputs from agencies.)