US stock markets are expected to see further declines as the week progresses, with rising oil prices adding to investor concerns. The further increases in oil prices have fueled inflation fears and raised expectations for higher interest rates.
Broker IG indicates that the Dow Jones Industrial Average is expected to close 0.7% lower at 52,418 points, while the Nasdaq 100 is projected to fall 0.6% to 29,337 points.
Oil prices have continued to rise amid renewed mutual attacks in the Persian Gulf. Brent crude, the benchmark for North Sea oil, has surpassed $100 per barrel for the first time since July. Joachim Klement from Panmure Liberum notes that oil prices of $100 per barrel are bringing inflation pressures back into focus. In this environment, and with no forward guidance from the Federal Reserve, the decisions of the European Central Bank and the statements of Christine Lagarde on Thursday will gain significance.
The recent surge in oil prices comes ahead of the release of US inflation data on Friday, which is seen as crucial in determining whether the Federal Reserve will raise interest rates in the upcoming week.
The rising oil prices have benefited the stocks of US oil companies. Shares of Exxon Mobil and Chevron have gained up to 1.0% in pre-market trading.
Meanwhile, shares of Casey's General Stores have fallen 12% pre-market after the retailer reported quarterly results that missed expectations. The outlook for the fiscal year 2026/27 remains unchanged.
In contrast, shares of Rocket Lab have risen 2.1% after the space technology company unveiled a new solar cell designed for use in space, which reduces dependence on certain materials.
