{"id":77579,"date":"2026-08-25T12:50:23","date_gmt":"2026-08-25T12:50:23","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2026\/08\/25\/extended-pullback-by-crude-oil-may-lead-to-initial-strength-on-wall-street\/"},"modified":"2026-08-25T15:52:58","modified_gmt":"2026-08-25T15:52:58","slug":"extended-pullback-by-crude-oil-may-lead-to-initial-strength-on-wall-street","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2026\/08\/25\/extended-pullback-by-crude-oil-may-lead-to-initial-strength-on-wall-street\/","title":{"rendered":"Extended Pullback By Crude Oil May Lead To Initial Strength On Wall Street"},"content":{"rendered":"
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The major U.S. index futures are currently pointing to a higher open on Tuesday, with stocks likely to move back to the upside after ending the previous session mostly lower.<\/p>\n

Early buying interest may be generated in reaction to an extended nosedive by the price of crude oil, which continues to give back ground after snapping a six-day winning streak on Monday.<\/p>\n

After plunging by more than 2 percent during yesterday’s trading, U.S. crude oil futures are plummeting by more than 3 percent.<\/p>\n

The extended pullback in crude oil prices comes after the Treasury Department officially announced “Operation Economic Outcast,” calling it an unprecedented, whole-of-government, economic campaign against Iran and its “enablers.”<\/p>\n

While the U.S. sanctioned nearly 60 entities, individuals, and vessels that it said “enable the Iranian regime’s recklessness,” traders seem relieved the Treasury stopped short of immediate secondary sanctions against other countries sustaining Iran’s trade.<\/p>\n

The steep drop in crude oil prices has also contributed to a continued decrease in treasury yields, which is also contributing to the positive sentiment on Wall Street.<\/p>\n

However, overall trading activity may be somewhat subdued as traders look ahead to key events in the coming days, including the release of key U.S. inflation data, Nvidia’s (NVDA) quarterly earnings and the Jackson Hole economic symposium.<\/p>\n

After coming under pressure early in the session, stocks fluctuated over the course of the trading day on Monday but largely maintained a negative bias.<\/p>\n

The tech-heavy Nasdaq showed a notable decline on the day, ending the session at its lowest closing level in three weeks.<\/p>\n

The Nasdaq ended the day off its early lows but still closed down 200.26 points or 0.8 percent at 25,980.19. The S&P 500 also fell 21.51 points or 0.3 percent to 7,652.86.<\/p>\n

Meanwhile, the narrower Dow bucked the downtrend and rose 140.15 points or 0.3 percent to 53,417.16 amid strong gains by Visa (V), Walmart (WMT) and Disney (DIS).<\/p>\n

The pullback by the broader markets<\/span> partly reflected weakness among technology stocks, as reflected by the decline by the Nasdaq.<\/p>\n

Semiconductor stocks turned in some of the tech sector’s worst performances, with the Philadelphia Semiconductor Index tumbling by 2.7 percent.<\/p>\n

Shares of Nvidia (NVDA) slumped by 2.9 percent ahead of the release of the AI giant’s second quarter results after the close of trading on Wednesday.<\/p>\n

Computer hardware and networking stocks also saw considerable weakness, while outside of the tech sector, energy stocks came under pressure amid a steep drop by the price of crude oil.<\/p>\n

Overall trading activity appeared somewhat subdued, however, as traders look ahead to Nvidia’s earnings as well as the Jackson Hole economic symposium later this week.<\/p>\n

“[Fed Chair Kevin] Warsh is scheduled to deliver keynote remarks on Friday, and markets will be looking for greater clarity on both his assessment of inflation and the broader “regime change” he has advocated at the Fed,” said Daniela Hathorn, Senior Market Analyst at Capital.com.<\/p>\n

She added, “He has been reluctant to provide conventional forward guidance, meaning the speech may focus more heavily on the Fed’s reaction function and longer-term philosophy than explicitly signaling what policymakers will do in September.”<\/p>\n

A lack of major U.S. economic data may also have kept some traders on the sidelines ahead of the release of closely watched readings on consumer price inflation on Wednesday.<\/p>\n

Commodity, Currency Markets<\/b><\/p>\n

Crude oil futures are plummeting $2.44 to $82.57 a barrel after plunging $2.05 to $85.01 a barrel on Monday. Meanwhile, after rising $17.20 to $4,697.80 an ounce in the previous session, gold futures are edging down $5.60 to $4,692.20 an ounce.<\/p>\n

On the currency front, the U.S. dollar is trading at 159.25 yen compared to the 159.08 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is unchanged compared to yesterday’s $1.1662.<\/p>\n

Asia<\/b><\/p>\n

Asian stocks rose broadly on Tuesday as investors shrugged off concerns over mounting geopolitical tensions in the Middle East and sought direction from upcoming Nvidia earnings, a key U.S. inflation reading and Federal Reserve Chairman Kevin Warsh’s debut speech at the annual Jackson Hole conference.<\/p>\n

The U.S. dollar struggled for traction in Asian trading, while gold was subdued at $4,630 an ounce after reaching its highest level in more than three months earlier.<\/p>\n

Brent crude futures traded lower at $91.57 a barrel after falling more than 2 percent on Monday to snap a six-day winning streak.<\/p>\n

Investors are preparing for the possibility of a prolonged escalation in tensions between Washington and Tehran after U.S. Treasury Secretary Scott Bessent announced a wave of new sanctions to isolate the Iranian regime and warned that countries and companies that help Iran move or hide money could face U.S. actions and potentially lose access to the U.S. dollar system.<\/p>\n

Iranian Parliament Speaker Mohammad Bagher Ghalibaf brushed off the U.S. threats and mocked President Donald Trump with a “Make America Hungry Again” remark. Economy Minister Ali Madanizadeh said Tehran is “fully prepared” to counter sanctions.<\/p>\n

China’s Shanghai Composite Index edged up 0.2 percent to 3,889.44 after a choppy session. Hong Kong’s Hang Seng Index fluctuated before finishing marginally lower at 25,511.10.<\/p>\n

Japanese markets recovered from an early slide to close higher, led by chip-related stocks, with heavyweight SoftBank Group rallying 2.3 percent. The Nikkei 225 Index and the broader Topix Index both rose half a percent to close at 65,856.43 and 4,093.67, respectively.<\/p>\n

Seoul stocks recouped sharp early losses to end higher as chip stocks recovered from a sell-off ahead of earnings from Nivida and Marvel Technology. The Kospi Index closed 0.7 percent higher at 6,742.74.<\/p>\n

Australian markets rose notably after minutes from the Reserve Bank of Australia’s August meeting showed the board unanimously held the cash rate at 4.35 percent.<\/p>\n

The benchmark S&P\/ASX 200 Index climbed 0.7 percent to 9,164.60, extending gains for a second day running. The broader All Ordinaries Index closed 0.6 percent higher at 9,374.90.<\/p>\n

Financials paced the gainers ahead of domestic inflation data due on Wednesday. Coles jumped 4.9 percent after the supermarket giant reported strong full-year results and flagged a major network expansion.<\/p>\n

Across the Tasman, New Zealand’s benchmark S&P\/NZX-50 Index advanced 0.8 percent to 13,992.72, erasing losses in the previous session.<\/p>\n

Europe<\/b><\/p>\n

European stocks are modestly higher on Tuesday as U.S. Treasury yields ease from recent highs following reports that the Treasury could use its nearly $1 trillion General Account to help fund its recently announced bond buyback program.<\/p>\n

Investors also took comfort in a softer-than-feared U.S. sanctions package against Iran that warned all countries to stop doing business<\/span> with Iran or face secondary sanctions.<\/p>\n

The Treasury Department stopped short of imposing any penalties, helping ease fears over potential disruption to near-term crude flows.<\/p>\n

The German DAX Index is up by 0.8 percent, the French CAC 40 Index is up by 0.3 percent and the U.K.’s FTSE 100 Index is up by 0.1 percent.<\/p>\n

In economic news, Germany’s economy<\/span> expanded more than estimated in the second quarter as exports remained strong despite geopolitical tensions, Destatis reported today.<\/p>\n

GDP posted quarterly growth of 0.3 percent, which was upwardly revised from the 0.2 percent estimated initially. This followed an expansion of 0.4 percent in the first quarter.<\/p>\n

On a yearly basis, GDP growth accelerated to 1.0 percent in the second quarter from 0.7 percent in the first quarter.<\/p>\n

Tech stocks traded higher, with ASML Holding and Infineon Technologies jumping ahead of earnings from Nivida and Marvel Technology due this week.<\/p>\n

U.S. Economic News<\/b><\/p>\n

Standard & Poor’s is scheduled to release its report on home prices in major metropolitan areas in the month of June at 9 am ET.<\/p>\n

At 10 am ET, the Conference Board is due to release its report on consumer confidence in the month of August. The consumer confidence index is expected to edge down to 90.1 in August after falling to 90.8 in July.<\/p>\n

The Commerce Department is also due to release its report on new home sales in the month of July at 10 am ET. New home sales are expected to drop to an annual rate of 620,000 in July after jumping to an annual rate of 628,000 in June.<\/p>\n

At 1 pm ET, the Treasury Department is scheduled to announce the results of this month’s auction of $69 billion worth of two-year notes at 1 pm ET. <\/p>\n<\/p>\n<\/div>\n