US Stock Market to Open Unchanged Amid Escalation of US-Iran Conflict, US Dollar Index Surpasses 99
US Stock Market Update
Thursday, 5 March
The US stock market is poised to open on a flat note following a smart recovery in the previous session. Futures for the S&P 500, Dow Jones Industrial Average, and Nasdaq are trading mixed at 0.01%, -0.33%, and 0.01%, respectively, in pre-market trade.
Economic Data Releases
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Investors are awaiting key US economic data releases, including initial jobless claims, scheduled for later today, and unemployment rate and nonfarm payrolls numbers, set to be released tomorrow. These releases will provide cues about the US Federal Reserve's rate-cut outlook.
US-Iran Conflict Escalates
The US-Iran conflict enters its sixth day, with Iran continuing attacks on US military bases and key energy infrastructure in the Gulf region. Crude prices have resumed their winning run, surging 4% to $84.63 per barrel for Brent, the international benchmark, and 4.4% to $78 per barrel for the US benchmark crude.
Currency Market
The US dollar has regained strength, rising 0.4% to 99.2 on the dollar index, which measures the greenback against a basket of currencies.
Oil Market
Over 300 oil tankers are currently inside the Strait of Hormuz, with traffic in and out of the chokepoint all but halted following the outbreak of the war. The US is preparing to provide risk insurance and escorts for ships in the Persian Gulf to ensure traffic can move through the Strait.
Investor Takeaway
Investors should remain cautious and monitor key economic data releases for cues on the US Federal Reserve's rate-cut outlook.
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