Hormuz Tensions Heat Up; US Markets Hit
US stock markets closed lower in Thursday's trading (July 6). The S&P 500 index fell 0.2%, the Nasdaq 100 declined 0.4%, and the Dow Jones dropped 464 points.
Pressure mounted after oil prices rose again, sparking inflation concerns. Rising energy costs led the market to assess that the Federal Reserve might still raise interest rates at next month's meeting.
Oil prices strengthened as investors began to doubt the full opening of the Strait of Hormuz. Iran reportedly plans to ban US and Israeli-owned vessels from passing through and is seeking compensation from nations deemed hostile to Tehran.
Market sentiment was further dampened by hawkish comments from several Fed officials. Fed Chair Kevin Warsh also reportedly signaled readiness to raise interest rates should inflationary pressures intensify again.
Financial and technology stocks also declined. JPMorgan fell 0.8%, Morgan Stanley dropped 2.1%, and Alphabet lost 1.3%. Western Digital plunged 13% due to disappointing business projections, while SanDisk fell 6.8%.
Newsmaker Analysis: Wall Street remains under pressure as rising oil prices increase the risk of inflation and higher interest rates. If tensions in Hormuz continue to drive up energy costs, technology and financial stocks risk further declines. However, progress on an Iran deal could push oil prices down and help the stock market recover. (arl)
Source: Newsmaker.id
