U.S. stock futures show modest gains as investors navigate escalating military tensions between the United States and Iran, rising oil prices, and new trade restrictions with Canada.

Key Points

• S&P 500 futures rose 0.1% and Nasdaq 100 futures gained 0.2% during early Wednesday trading.
• Brent crude oil prices climbed to $99.91 per barrel following military exchanges in the Strait of Hormuz.
• The 10-year Treasury yield remains near 5%, a two-decade high, as the U.S. Treasury increases debt buybacks.
• President Donald Trump signed orders banning specific Canadian imports, effective September 29, following retaliatory Canadian tariffs.
• Markets are pricing in a 60% probability of a Federal Reserve interest rate hike during next week's policy meeting.

Why it Matters

The convergence of geopolitical conflict, trade protectionism, and high interest rates creates significant volatility for global financial markets. Investors are closely monitoring these developments to gauge the potential for sustained inflation and the impact on central bank monetary policy decisions.