Futures tracking US equities trimmed their losses as markets assessed how the US war against Iran will impact energy prices and increase deficit spending by the Treasury. Contracts tracking the three major stock indices swung 0.4% higher on reports that Iranian spy officials reached out to the US for dialogue on Sunday. Prices of crude oil and refined product were still sharply higher, but slowed their surges from earlier in the week amid skepticism that President Trump’s guarantees of insurance and military escorts for tankers crossing the Strait of Hormuz would reignite oil exports from the Persian Gulf. The resulting inflationary risks from energy shocks pressured equities in most industries as yields spiked across the curve, with the heavyweight tech sector extending losses from last month. Banks and asset managers were also under pressure from signs of fragility in private credit giants.
