Market Summary
US-Iran Escalation Reignites Oil Surge and Inflation Concerns: Oil prices climbed sharply after fresh U.S.-Iran military strikes escalated Middle East tensions. Brent crude rose 4.6% to $79.47 per barrel, marking a third consecutive day of gains. Traffic through the Strait of Hormuz has slowed to a near standstill, reigniting geopolitical concerns around energy supplies. The rally in crude has prompted investors to bring forward Fed rate hike expectations to October from December, adding fresh pressure to equity valuations already challenged by elevated AI stock multiples.
Gold and Silver Slide on Rate Hike Expectations and Dollar Strength: Gold declined for a third consecutive day by 0.77% to $4,076 per ounce as higher interest rate expectations weakened the appeal of non-yielding assets. Silver dropped 2.70% to $58.20. The U.S. dollar edged slightly higher amid expectations of tighter monetary policy, pressuring precious metals demand as investors rotated into rate-sensitive fixed income.
S&P 500: The S&P 500 fell to a low of 7,423 before recovering to close at 7,482, finishing down 0.28% for the day. U.S. equity futures held near flat throughout Asia trading after fluctuating between gains and losses. U.S. Treasury yields remained little changed at 4.58%.
Economic Calendar
- Greece CPI
- Mexico CPI
- U.S. Initial Jobless Claims
- U.S. Existing Home Sales
Key Market Moves Today
- S&P 500 Futures: +0.13% (7,538)
- U.S. 10-Year Yield: -0.20 bps (4.58%)
- Brent Crude: +1.13% ($78.90)
- Bitcoin: -0.12% ($61,984)
- Spot Gold: -0.36% ($4,062)
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