US stock market indices opened little changed on Wednesday, as military tensions between the US and Iran continued to heat up, with oil futures trading higher and investor anxiety increasing over the likelihood of a hike in interest rates for September by the US Federal Reserve.
After the opening bell, the Dow Jones Industrial Average was up 0.4%, with the S&P 500 trading flat at an uptick of 0.1%, and the Nasdaq Composite started the session flat at a downturn of 0.1%.
The price of oil also saw a decline with Brent crude trading at a 0.36% uptick at $94.31 per barrel at 7:01 p.m. IST.
This stemmed from the US's 10-Year Treasury Yields increasing over 4.81% leading to investor concern over stock valuations. The yields themselves increased over anticipation of increasing inflation due to to higher oil prices. The 30-year Treasury
yield rose to 5.28%. This comes as global bond yields continue to surge amid renewed Middle East tensions continue to concern investors.
ALSO READ: Uday Kotak Sees 'Roller Coaster' For Interest Rate Markets, Flags US, Japan's 10-Year Bond Yields
Traders estimate the chances of rate hike in Septmeber at more than 50% for three major central banks, including around 70% for the Fed, according to data collected by Bloomberg.
The US carried out its second round of attacks against the Islamic Republic in three days, following reported attacks by the IRGC on commercial shipping in the Strait of Hormuz and US military. in the region. Additionally, shipping risks heightened after a tanker was hit by three unidentified projectiles while transiting the Strait of Hormuz on Monday, reports said.
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