The U.S. dollar index rose, oil prices continued to rise after gapping higher, and the three major U.S. stock index futures fell slightly, but Bitcoin and Ethereum were not significantly affected yet.
Investors have become risk averse. After Biden announced his support for Israel, the United States sent warships to the Eastern Mediterranean and stepped up air power deterrence. There is bipartisan support for aid to Israel.
If the war continues, it may push the two parties to reach an agreement as soon as possible to avoid a government shutdown. Expenditures that exceed the budget may cause headaches for the finance department, and whether to issue new debt is uncertain.
Hamas attacks have led to higher oil prices, with the Middle East supplying one-third of the world's oil. An escalation in the conflict could affect oil output, with the United States and Iran already involved, and could spread to Saudi Arabia.
Rising oil prices are unfavorable to the Fed and may increase the burden of inflation. The escalation of the war may increase the probability that the Federal Reserve will raise interest rates in November or December, or even extend the period of maintaining high interest rates. There is also the possibility of no interest rate cut in 2024.
Investors have become risk averse. After Biden announced his support for Israel, the United States sent warships to the Eastern Mediterranean and stepped up air power deterrence. There is bipartisan support for aid to Israel.
If the war continues, it may push the two parties to reach an agreement as soon as possible to avoid a government shutdown. Expenditures that exceed the budget may cause headaches for the finance department, and whether to issue new debt is uncertain.
Hamas attacks have led to higher oil prices, with the Middle East supplying one-third of the world's oil. An escalation in the conflict could affect oil output, with the United States and Iran already involved, and could spread to Saudi Arabia.
Rising oil prices are unfavorable to the Fed and may increase the burden of inflation. The escalation of the war may increase the probability that the Federal Reserve will raise interest rates in November or December, or even extend the period of maintaining high interest rates. There is also the possibility of no interest rate cut in 2024.