U.S. crude oil prices rose over 4% on Monday, surpassing $80 per barrel, as the Pentagon deployed additional forces to the Middle East in response to heightened tensions. Defense Secretary Lloyd Austin ordered a carrier strike group, including F-35 warplanes, and a guided-missile submarine to the region. Israel has been preparing for retaliatory strikes by Iran and Hezbollah after the assassination of a Hamas leader in Tehran, CNBC reported. WTI and Brent crudes were both hovering around $80 per barrel at the time of publishing.
Inflation outlook
U.S. consumers believe price increases will gradually decline, with expectations for three-year inflation hitting a record low of 2.3%, according to a New York Federal Reserve report. While inflation is expected to remain elevated over the next year, consumers anticipate a decline in the following years. The report comes amid expectations that the Federal Reserve may reduce interest rates next month. The Labor Department’s consumer price index report, due Wednesday, is expected to show a 0.2% increase last month and an yearly rate of 3%, still above the Fed’s 2% target.
S&P 500, Nasdaq unchanged
The S&P 500 and the Nasdaq Composite largely held on to gains in choppy trade ahead of key inflation data. The S&P 500 closed virtually unchanged, up 0.23 points, while the Nasdaq Composite added 0.21%, boosted by a surge in Nvidia shares. However, the Dow Jones Industrial Average fell 0.36%. The yield on the 10-year Treasury edged lower.