US benchmark equity indexes ended lower Monday amid persistent uncertainty around the geopolitical situation in the Middle East. Analysts speculate that this volatility is deriving from the ongoing tensions, particularly considering the recent missile attacks involving Israel and Iran. Investors are closely monitoring the potential for escalated conflict, which seems poised to impact global markets significantly. Official data are likely to show Thursday that US consumer inflation rose 0.1% sequentially and 2.3% annually last month, according to a Bloomberg-compiled consensus.
This modest increase reflects ongoing inflation pressures, which could result in further scrutiny from the Federal Reserve regarding interest rate policies. Consumer credit usage rose by $8.9 billion in August, a smaller increase than a $12 billion gain expected in a survey compiled by Bloomberg, following a substantial $26.7 billion jump in July.
Both revolving and nonrevolving credit use showed an uptick in the month, indicating that consumers continue to rely on credit for spending amid economic uncertainties. In the commodities market, November West Texas Intermediate crude oil closed up $2.76 to settle at $77.14 per barrel, while December Brent crude, the global benchmark, was last seen up $2.55 to $77.14.
This rise is primarily driven by expectations that Israel is preparing to retaliate against Iran after last week's missile attack. Such developments are heightening anxiety over a broader conflict in the Middle East that could disrupt Persian Gulf supplies and subsequently drive oil prices higher. In company news, Super Micro Computer ($SMCI) shares jumped nearly 16% after the company announced that it recently deployed more than 100,000 graphics processing units in one quarter.
This significant deployment underscores the demand for advanced computing solutions and the company's strategic positioning in the market. Conversely, Deckers Outdoor ($DECK) shares were down 4.7% as Seaport Global downgraded the stock to neutral from buy. This downgrade reflects ongoing challenges within the retail sector as companies navigate changing consumer behaviors and market dynamics, adding to the overarching economic uncertainty..