US equities posted solid gains overnight as improving sentiment on the Middle East boosted risk appetite, with tech stocks leading the Nasdaq up more than 2%. The dollar softened against most major currencies but kept strengthening versus the yen. Oil prices also rose, while gold fell sharply back towards its annual lows.
📊 Equities
US equity markets posted solid gains overnight as investors responded positively to improving sentiment surrounding developments in the Middle East. Hopes that geopolitical tensions may continue to ease supported risk appetite, with technology stocks leading the advance and pushing the Nasdaq more than 2% higher. The S&P 500 also enjoyed a strong session, while the Dow Jones recorded more modest gains. The Dow rose 0.59% to 52,182, the S&P 500 climbed 1.17% to 7,440, and the Nasdaq surged 2.07% to 25,820.
🛢️ Oil
Despite the improvement in broader market sentiment, oil prices pushed higher, with Brent crude gaining 1.06% and WTI advancing 1.75%, suggesting traders remain wary that tensions in the Middle East could still pose risks to global energy supply.
🥇 Gold
Gold, however, fell sharply, declining 1.79% to trade back towards its annual lows.
💵 FX & Bonds
In fixed income markets, US Treasury yields edged higher, while the US dollar softened against most major currencies, although it continued to strengthen against the Japanese yen, climbing to its highest level in four decades as policy divergence between the Federal Reserve and the Bank of Japan remained a key driver. The USD eased 0.23% to 101.13. The 2-year Treasury yield rose 1.2 basis points to 4.104%, while the benchmark 10-year yield climbed 0.6 basis points to 4.374%.
| Market | Change | Close |
|---|---|---|
| Dow Jones | +0.59% | 52,182 |
| S&P 500 | +1.17% | 7,440 |
| Nasdaq | +2.07% | 25,820 |
| USD Index | -0.23% | 101.13 |
| US Treasury 2Y | +1.2 bps | 4.104% |
| US Treasury 10Y | +0.6 bps | 4.374% |
| Oil – Brent | +1.06% | $72.75 |
| Oil – WTI | +1.75% | $70.44 |
| Gold | -1.79% | $4,015.21 |
📌 Today’s Focus
Attention now turns to a busy macroeconomic calendar, with today’s sessions expected to be driven by both geopolitical developments and several important economic releases. Canada’s monthly GDP figures headline the North American session, while the US will release both Conference Board Consumer Confidence and JOLTS Job Openings data, providing fresh insights into the strength of the US economy and labour market.
🔹 All Day – Germany – Preliminary CPI Data
🔹 10:30 pm – Canada – GDP Data
🔹 12:00 am – US – CB Consumer Confidence Data
🔹 12:00 am – US – JOLTS Job Openings Data