U.S. stock futures and oil prices shrugged off the weekend’s attack on Israel by Iran, but stocks in Asia were down after Iran attacked Israel over the weekend.
Officials said most of the 300 drones and missiles Iran launched toward Israel on Saturday were intercepted, and tensions appeared to be de-escalating on Sunday. President Joe Biden condemned the attack and said U.S. forces helped Israel take down nearly all of the incoming drones and missiles.
“While we have not seen attacks on our forces or facilities today, we will remain vigilant to all threats and will not hesitate to take all necessary action,” Biden said. He plans to convene a meeting with other leaders from the Group of Seven nations.
U.S. stock futures were rising after the start of trading on Sunday evening.
futures were up 0.3% at around 8 p.m. Eastern, or 104 points, while
futures were up 0.3%, and
futures were up 0.4%.
and
futures were relatively flat on Sunday evening.
futures rose 0.2%.
was down 2.7%.
was up 2.7%.
Advertisement – Scroll to Continue
The
in Japan opened down 1.2%, while the South Korea Stock Exchange KOSPI index fell 1.4%.
The
Tel Aviv Stock Exchange 125 Index
and the
Tel Aviv Stock Exchange 35 Index
were each up 0.3% on Sunday.
Iran’s foreign minister Hossein Abdollahian said on Sunday that his government had no plans to continue attacks against Israel, according to a translated social media post.
Advertisement – Scroll to Continue
Traders are watching the opening of markets in Asia later on Sunday in the U.S. for a reading on how stocks and other assets will react globally. Oil closed Friday already on an upswing, while the U.S. stock market ended lower.
The attack could pressure lawmakers on Capitol Hill to bring foreign aid back to the front burner. Byron Callan at Capital Alpha Partners said “this should increase the probability that the House passes a security
supplemental if members conclude that Iran’s drone/missile industry is a common link between Russia’s war in Ukraine and Israel’s security.”
It could also complicate the Federal Reserve’s fight against inflation and its decision on the timing of any interest-rate cuts. “Our sense is that events in the Middle East will add to the reasons for the Fed to adopt a more cautious approach to rate cuts, but they won’t prevent it from cutting altogether,” Capital Economics wrote in a note on Sunday. “We expect the first move in September.”
Write to Liz Moyer at liz.moyer@barrons.com
