US equity markets extended Thursday’s gains on Friday as investors remained focused on strong corporate earnings expectations despite ongoing geopolitical uncertainty. Oil eased modestly after recent gains, Treasury yields moved higher on inflation concerns, and the dollar slipped against most major currencies. Over the weekend, Iran announced the Strait of Hormuz is once again closed and hostilities escalated significantly, causing price gaps at the Asian open and pointing to elevated volatility ahead.
📊 Equities
US equity markets extended Thursday’s gains on Friday as investors remained focused on strong corporate earnings expectations despite ongoing geopolitical uncertainty. The Dow Jones rose 0.28% to 52,637, the S&P 500 gained 0.42% to 7,575, and the Nasdaq added 0.29% to 26,281.
🛢️ Oil
Both major oil benchmarks finished lower as traders continued to monitor developments in the Middle East. Brent crude slipped 0.38% to US$76.01 per barrel, while WTI crude fell 0.93% to US$71.41.
🥇 Gold
Gold ended virtually unchanged following another volatile trading session, slipping just 0.02% to US$4,120.07 per ounce.
💵 FX & Bonds
US Treasury yields moved higher once again as inflation concerns persisted, with the 2-year yield rising 3.1 basis points to 4.208% and the 10-year yield climbing 1.0 basis point to 4.561%. The US Dollar Index was little changed overall, edging down 0.06% to 100.97, though it slipped against most major currencies. The Japanese Yen underperformed after reports that the government plans to encourage pension funds to increase allocations to domestic assets.
| Market | Change | Close |
|---|---|---|
| Dow Jones | +0.28% | 52,637 |
| S&P 500 | +0.42% | 7,575 |
| Nasdaq | +0.29% | 26,281 |
| USD Index | -0.06% | 100.97 |
| US Treasury 2Y | +3.1 bps | 4.208% |
| US Treasury 10Y | +1.0 bps | 4.561% |
| Oil – Brent | -0.38% | $76.01 |
| Oil – WTI | -0.93% | $71.41 |
| Gold | -0.02% | $4,120.07 |
📌 Today’s Focus
Attention now turns to the start of the new trading week, where an otherwise quiet economic calendar is likely to be overshadowed by geopolitical developments. Over the weekend, Iran announced the Strait of Hormuz is once again closed and hostilities increased significantly, leading to noticeable price gaps across several markets at the Asian open, with traders expecting more volatility as the day progresses.
🔹 US – FOMC Member Michelle Bowman Speaks
🔹 US – FOMC Member Christopher Waller Speaks