Wall Street extended its recovery a day ahead of the Federal Reserve’s interest rate decision. The S&P 500 index rose 0.3% to 6,717.19 points, while the tech-heavy NASDAQ Composite improved 0.5% to 22,479.53 points.
The market gained momentum on Monday after technology stocks like Nvidia (NASDAQ:NVDA) surged and oil prices fell. However, the rally was short-lived as oil prices crept up throughout the session.
Iran’s ongoing conflict with Israel has fueled concerns about energy prices and inflation. The US, along with some allies, is calling for help to reopen the Strait of Hormuz, a crucial waterway that controls 20% of global oil supply.
The Federal Reserve’s decision on interest rates will provide insight into policymakers’ plans to combat potential inflationary shocks from rising oil prices. “Conflict-driven inflation risks could force policymakers to reassess their outlook for 2026,” said Lukman Otunuga, senior market analyst at FXTM.
Other major central banks, including the European Central Bank and the Bank of Japan, will also meet this week. Investors will be keeping an eye on earnings reports from DocuSign and Lululemon Athletica after the closing bell on Wall Street.
The conflict in Iran has raised concerns about energy prices and inflation, with oil prices spiking by over 40% since the start of the joint US-Israeli bombardments. The market is bracing for heightened volatility across equities, commodities, and currencies as traders await the Fed’s decision.
Source: https://www.investing.com/news/stock-market-news/us-stock-futures-subdued-as-irandriven-oil-price-climb-remains-in-focus-4565442