U.S. stock futures were mixed on Friday, as the Dow Jones index slipped and the Nasdaq 100 and S&P 500 indices rose, following Thursday’s higher close.
According to Reuters, the U.S. stated it can maintain its naval blockade of Iran “indefinitely,” and Treasury Secretary Scott Bessent warned of impending measures “never been seen in the history of economic isolation.”
The economic pressure campaign follows fresh Iranian attacks on vessels in the Strait of Hormuz, where falling shipping traffic has led the International Energy Agency to forecast a 4% drop in global oil supply this year.
The unchanged July Producer Price Index reading added to signs of easing inflation following Wednesday’s softer-than-expected Consumer Price Index report. Traders subsequently scaled back expectations for a September Fed rate hike, with markets pricing a 32.4% probability of an increase and a 67.6% chance of no change.
Meanwhile, the 10-year Treasury bond yielded 4.66%, and the two-year bond was at 4.15%. The CME Group’s FedWatch tool projections show markets pricing a 32.6% likelihood of the Federal Reserve hiking the current interest rates during its September meeting.
