Market Highlights

Wall Street’s rally is showing some signs of fatigue on speculation stocks have run too far amid economic and geopolitical risks. Longer-term Treasuries underperformed. Oil bounced from its biggest two-day plunge since 2022. The dollar fell to a three-year low. Just a few points away from its all-time high, the S&P 500 wavered. The Nasdaq 100 edged up, with Nvidia Corp. hitting a record. In late hours, Micron Technology Inc. gave an upbeat forecast. The Russell 2000 lost 1.2%. The yield gap between 30-year and five-year bonds is near levels last seen in 2021. The curve steepening is a wager the Federal Reserve will cut rates eventually while concern about debt issuance will pressure longer-term maturities. The dollar declined and Treasury yields edged lower on bets that US rate cuts could come sooner than expected, after a report that President Donald Trump is considering an early appointment for the next Federal Reserve chairman.

Wall Street bulls drove stocks higher amid easing Middle East tensions and balanced comments from Federal Reserve Chair Jerome Powell on prospects for rate cuts. Treasury yields and the dollar fell. Oil tumbled. The S&P 500 rose 1.1% and the Nasdaq 100 climbed 1.5%, notching its firstrecord since February. West Texas Intermediate crude plunged nearly 15% over two sessions to settle around $64 a barrel. In late hours, FedEx Corp. forecast a worse-than-expected profit. Money markets fully priced in two Fed cuts by the end of 2025, with a firstmove in September far more likely than next month — though bets on a July reduction edged up from last week.

Wall Street traders drove stocks higher as oil tumbled, with Iran’s retaliatory strikes at a US air base in Qatar seen as symbolic and unable to trigger a broader economic fallout. The dollar fell. The S&P 500 extended its gain to 1% as President Donald Trump raised hopes of de-escalating the Middle East conflict, saying the Iranian attack was “very weak” and telegraphed by Tehran. West Texas Intermediate sank below $70. As worries about an imminent threat to inflation abated, Treasury yields slid. The move was also fueled by a Federal Reserve official saying rates could drop as soon as July. Oil slumped and stocks gained as US President Donald Trump said Tuesday a ceasefire has been implemented between Israel and Iran, spurring optimism there will be a lasting pause in the conflict.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $74.80 during the Asian trading hours on Monday. The WTI price has climbed to the highest level since January after the United States (US) launched direct attacks against Iran, raising fears of potential disruptions to energy supplies from the Middle East, particularly through the Strait of Hormuz. Gold price (XAU/USD) extends its steady intraday descent from the $3,400 neighborhood and refreshes its daily low heading into the European session. The US attack on Iran’s nuclear facilities on Sunday raises the risk of a broader conflict in the Middle East and underpins the US Dollar's (USD) status as the global reserve currency. Moreover, the Federal Reserve's (Fed) hawkish signal last week turns out to be another factor lending support to the Greenback and exerting downward pressure on the non-yielding yellow metal.

Oil trimmed earlier gains and equity futures remained lower after White House press secretary Karoline Leavitt said President Trump will decide within two weeks whether to back Israel militarily in its conflict with Iran. The remarks offered some short-term clarity but did little to resolve broader uncertainty around potential US involvement and the risk of renewed energy-driven inflation. S&P 500 contracts slipped 0.9% in thin holiday trading. Europe’s Stoxx 600 dropped 0.8%, falling for a third straight session. Asian equities declined 1.4%, with losses concentrated in Japan and South Korea. West Texas Intermediate rose 0.7% to $75.8 a barrel. Brent crude advanced past $78 a barrel, extending gains in a week where market reaction to the Middle East conflict has been most concentrated in oil. The dollar was little-changed against a basket of currencies, after paring earlier gains.

A rally in stocks fizzledout after Federal Reserve Chair Jerome Powell warned that tariff-driven economic uncertainty and inflation risk continued to complicate the central bank’s bid to ease monetary policy in earnest. Gains in bonds waned. The dollar barely budged. Equities closed little changed, with the S&P 500 ending below 6,000 after briefly crossing that mark. Powell noted that increases in tariffs are likely to boost prices, while adding that the effects on inflation could be more persistent. He also declined to say if he’ll stay on after his term ends. Treasury two-year yields, which are more sensitive to imminent Fed moves, almost erased a decline that had earlier reached seven basis points. Equities declined as investors saw a growing likelihood of direct US involvement in Israel’s conflict with Iran, and Federal Reserve Chair Jerome Powell warned of meaningful inflation ahead.

Wall Street’s concerns that an escalation of tensions in the Middle East could trigger a more direct US involvement spurred a slide in stocks, which also dropped as weak economic data lifted bonds ahead of the Federal Reserve decision. Oil hit its highest since January. Risk-off sentiment prevailed, with the S&P 500 down nearly 1%. West Texas Intermediate settled around $75 a barrel. A gauge of crude-market volatility rose to a three-year high. The dollar climbed the most in over a month. Aside from geopolitical risks, Treasuries rose as tepid reports on retail sales, housing and industrial output supported bets the Fed will cut rates at least once more in 2025 if the rally in crude doesn’t turn out to be a threat to the disinflationary path. Oil traded near a five-month high on concern escalating tensions in the Middle East will trigger more direct US involvement. Equities were mixed before a Federal Reserve monetary policy decision.

Relative calm returned to global markets, with stocks climbing and oil sinking alongside gold as fears subsided that Israel’s war against Iran would escalate into a wider conflict. News reports that Tehran wants to restart talks over its nuclear program also fueled risk-on sentiment. Equities bounced after Friday’s slide, with the S&P 500 up about 1%. West Texas Intermediate settled below $72 a barrel after spiking at the start of the session. The dollar was little changed. Longer-maturity Treasuries continued to lag the market even after a $13 billion sale of 20-year bonds drew the expected yield level — a notable improvement from last month’s auction disappointment that spurred a broad selloff.

Wall Street buckled as reports of Iran’s retaliation for Israel’s attack on its nuclear facilities deepened concerns that the conflict is escalating, with oil jumping and stocks taking a hit. The S&P 500 lost over 1%, wiping out this week’s advance. Airline and travel companies tumbled, while energy producers and defense shares rose. West Texas Intermediate crude futures surged more than 7%, the most since March 2022. Gold hovered near its all-time high. Treasuries fell as a surge in oil stoked concern about a resurgence in inflation. The dollar edged up. As markets reopened following a weekend of strikes between Israel and Iran, investors held back on making big bets in either direction. Chinese stocks swung between gains and losses. European equity futures edged lower. The dollar was little changed, while gold held near a record high.

A solid sale of long-term Treasuries reduced fears that spiraling deficits are causing investors to shun the bonds, with the market also gaining as soft inflation fueled bets the Federal Reserve will cut rates should the economy decelerate. The dollar hit a three-year low. Stocks rose. US 30-year yields approached the 4.8% mark after the $22 billion auction. The S&P 500 closed at the highest since Feb. 20, ending at a striking distance of its all-time high. Oracle Corp. climbed to a record on a strong sales outlook. Geopolitical worries briefly weighed on equities as ABC News reported Israel is considering military action against Iran. Oil pared most of its losses. Crude oil jumped the most in more than three years, stocks slid and haven assets including government bonds and gold rose after Israel attacked Iran’s nuclear program sites in a major escalation of tensions in the Middle East.