While the probability of a rate hike by year-end was reported at 90% in the US, US stock futures fell. The US military reportedly attacked Iranian-made missile launchers on Larak Island, and Iran reportedly attacked US forces stationed there.
Regarding market trends from the 28th onward, reports indicated that a leading economist had put the probability of a rate hike by year-end at 90%, while US stock futures fell. The employment report and Broadcom’s earnings are attracting attention as the next market catalysts, and the Federal Reserve’s policy outlook remains the market’s focus.
Caution over Federal Reserve indicators at the Jackson Hole meeting strengthened expectations that inflation risks would remain elevated, prompting renewed attention to the prospect of higher US interest rates. This fueled activity in the dollar and affected the foreign exchange market.
The US military was reported to have attacked 2 Iranian-made missile launchers on Larak Island, strengthening risk aversion. Information later emerged that Iran had attacked US forces stationed in Jordan, casting geopolitical uncertainty over the markets.
The dollar also rose to the ¥160 range against the yen at one point. With concern over foreign exchange intervention mounting, some market participants believe the currency could swing again depending on upcoming economic data.