CNBC Daily Open: U.S. stocks dip and oil jumps as Iran, Fed independence concerns rise

U.S. President Donald Trump said in a Truth Social post on Tuesday that he had “cancelled all meetings with Iranian Officials,” and reiterated his support for protestors fueling one of the largest anti-government demonstrations in the Middle Eastern country.

Trump’s move suggests that diplomatic methods aimed at compelling Tehran to cease its violent crackdown on protestors might be off the table for now.

WTI crude and global benchmark Brent saw prices jump more than 2.5% during U.S. trading hours as Washington’s involvement in Iran — a major oil producer which has influence over the Strait of Hormuz — could destabilize the oil market.

Elsewhere, U.S. stocks dipped even though the core consumer price index for December came in cooler than expected.

“We’ve seen this movie before — inflation isn’t reheating, but it remains above target,” wrote Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management.

Trump’s continued attacks on Federal Reserve Chair Jerome Powell, which include “jerk” and “bad Fed person,” among other epithets, are likely to have stoked investor worries as well.

“Anything that chips away at [central bank independence] is probably not a great idea, and in my view, it will have the reverse consequences,” JPMorgan Chase CEO Jamie Dimon said on a call with media Tuesday. “It will raise inflation expectations and probably increase rates over time.”

‘We choose Denmark’: Greenland’s PM. At a press conference Tuesday, the island’s Prime Minister Jens-Frederik Nielsen said, “If we have to choose between the USA and Denmark here and now, we choose Denmark,” according to Danish public broadcaster DR.

Core U.S. CPI rises less than expected. In December, consumer prices, excluding food and energy, rose 0.2% on a monthly basis and 2.6% annually. Both figures came in 0.1 percentage points below expectations. Headline CPI was in line with estimates.

Trump attacks Powell again. On Tuesday, the U.S. president hurled a series of insults at Powell, saying at separate events that he was “crooked” and a “jerk” and “will be gone soon.” Meanwhile, global central bankers issued a joint statement in defense of Powell.

U.S. stocks fell Tuesday. Major indexes retreated from highs, while JPMorgan shares dipped even as the bank topped earnings estimates. Europe’s regional Stoxx 600 ticked down 0.08%. Shares of renewables firm Orsted jumped 5.3% following a favorable U.S. court ruling on its wind project.

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