U.S. equities showed limited gains at midweek, with the Dow Jones Industrial Average up 0.3% to 52,914 points ahead of the open, according to broker IG. The tech-heavy Nasdaq 100 was little changed at 29,071 points. Sentiment remained cautious as rising energy prices fueled inflation concerns and increased bets on a Federal Reserve rate hike.
Analysts cited geopolitical tensions in the Middle East and the resulting surge in crude prices as key drivers of market anxiety. Jochen Stanzl of Consorsbank noted that renewed conflict in Iran and elevated energy costs were at the heart of investor worries. The prospect of tighter U.S. monetary policy was further reinforced by recent remarks from Federal Reserve Governor Kevin Warsh, who emphasized that inflation was not falling fast enough.
The growing expectation of a September rate hike gained traction, with Chris Turner of ING stating that the Fed would likely act given the economy’s relative strength. The central bank’s next policy meeting is scheduled for September 17-18.
In corporate news, Palo Alto Networks reported quarterly earnings after the U.S. close, raising its full-year guidance above market forecasts. Despite the positive outlook, its shares fell 1.4% in pre-market trading, though the stock remains nearly double its year-to-date level, suggesting profit-taking. GitLab surged 24% after raising its annual revenue forecast, while Credo Technology dropped 10% following its quarterly results. Broadcom traded 0.4% higher ahead of its post-market earnings release.
The mixed corporate signals and macroeconomic headwinds kept investors on edge, with markets balancing cautious optimism against persistent inflation risks.
