US Stock Market Today | Dow Jones | Nasdaq Live Updates: Iran war stagflation shock puts Fed in a bind, says Goolsbee; US stocks pare some losses
Why it matters: The Iran conflict has prompted Madagascar to declare a 15-day energy emergency, impacting public services and global energy supply.
- US stock market opened lower on Tuesday as investors assessed the escalating conflict between the U.S. and Iran.
- Chicago Federal Reserve Bank President Austan Goolsbee expressed concern that the Iran war will lead to stagflation, driving inflation higher while slowing the economy, presenting a difficult challenge for the Fed.
- Madagascar declared a 15-day nationwide energy emergency due to supply disruptions linked to the Middle East conflict, prompting other African nations to raise fuel prices or impose energy-saving measures.
- Aluminium prices on the London Metal Exchange (LME) gained 0.1% to $3,472.50 a metric ton, as the market priced in prolonged repairs at a UAE smelter following an Iranian attack.
- Leaders of the International Energy Agency, International Monetary Fund, and World Bank will discuss the energy crisis next Monday, forming a coordination group to support governments with policy advice, financing, and risk mitigation tools amid one of the largest global energy supply shortages.
- Intel announced it would join Elon Musk's Terafab AI chip complex project, alongside SpaceX, Tesla, and xAI, to build advanced chip factories in Austin, Texas, for cars, humanoid robots, and AI data centers in space.
The ongoing Iran conflict is sparking fears of stagflation, with Chicago Federal Reserve Bank President Austan Goolsbee warning of an oil shock driving up prices while slowing the economy, leaving the Fed without a clear response. This global impact is already evident as Madagascar declares a 15-day energy emergency due to supply disruptions, and aluminium prices rise by 0.1% on the LME, reflecting prolonged smelter repairs in the UAE after an Iranian attack.
