Leading U.S. stock indexes traded lower on Monday following escalation of the conflict between the United States and Iran that pushed up crude prices and fuelled inflation concerns after Fed Chair Kevin Warsh's hawkish statements in his Jackson Hole address the previous week, according to a Reuters report.
Traders now see more than a 60% probability of a Federal Reserve rate hike at the September meeting, according to CME’s FedWatch tool, up sharply from 41.4% a week earlier. Expectations rose after Fed Chair Kevin Warsh said borrowing costs may need to increase if inflation fails to return to the central bank’s 2% target.
