The Money Edit

Opening bell

Opening bell

Brent crude $107.36 3%
S&P futures 0.5%
Nasdaq futures 1.1%
Kospi 3.3%
Nikkei 225 1.7%
10-year Treasury yield 4.97%

Oil jumps past $107, futures slide before Fed

Overnight

Wall Street ended Friday higher, with the S&P 500 up 0.86% to 7,656.98 and the Nasdaq up 0.96% to 26,333.04, snapping a four day losing streak. That calm did not hold, because new strikes on Saudi Arabia and on ships in the Gulf sent Brent crude up about 3% to $107.36 a barrel, roughly 9% higher on the week. Asia sold off in response, with South Korea's Kospi down 3.3% and Japan's Nikkei down 1.7%, while European futures pointed lower and S&P 500 futures sat down 0.5% with Nasdaq futures down 1.1%.

What to watch

There is no major US economic data today, so the week's weight sits on Wednesday, when the Federal Reserve announces its interest rate decision. Traders had already moved close to fully pricing in a rate increase after core inflation, which strips out food and energy to show the underlying trend, came in at 0.3% for August against the 0.2% expected. Costlier oil pushes that calculation further, because fuel feeds into almost every other price in the economy, and the 10 year Treasury yield near 4.97% shows borrowing costs are already adjusting.

Sources