US equities finished slightly lower overnight as investors stayed cautious on escalating Middle East conflict and busy earnings, with the Nasdaq leading declines. Treasury yields rose for a third session, oil hit six-week highs on Red Sea shipping fears, and gold rose to a two-week high on safe-haven demand.
📊 Equities
US equity markets finished slightly lower overnight as investors remained cautious amid the escalating conflict in the Middle East and ahead of another busy round of corporate earnings. The Dow Jones was little changed, while the S&P 500 edged lower and technology stocks continued to underperform, with the Nasdaq leading the declines. The Dow slipped 0.01% to 52,218, the S&P 500 fell 0.14% to 7,498, and the Nasdaq dropped 0.57% to 25,690.
🛢️ Oil
Energy markets remained firmly supported as the conflict between the US and Iran continued to disrupt sentiment across the Middle East. Both Brent and WTI crude climbed to six-week highs after additional commercial vessels reportedly turned away from the Red Sea following renewed threats from Houthi forces in Yemen. Brent rose 2.97% to $93.71, while WTI gained 2.95% to $86.83.
🥇 Gold
Safe-haven demand also continued to build, with gold rising to its highest level in two weeks as investors sought protection from ongoing geopolitical risks. Gold gained 1.30% to $4,129.35.
💵 FX & Bonds
Bond markets also remained under pressure as inflation concerns persisted, pushing Treasury yields higher for a third consecutive session, while the US Dollar Index slipped marginally on the day. The USD Index fell 0.05% to 101.13, the 2-year Treasury yield rose 3.6 bps to 4.298%, and the 10-year yield rose 2.6 bps to 4.655%.
| Instrument | Change | Last |
|---|---|---|
| Dow | -0.01% | 52,218 |
| S&P 500 | -0.14% | 7,498 |
| Nasdaq | -0.57% | 25,690 |
| USD Index | -0.05% | 101.13 |
| Treasury 2Y | +3.6 bps | 4.298% |
| Treasury 10Y | +2.6 bps | 4.655% |
| Brent | +2.97% | $93.71 |
| WTI | +2.95% | $86.83 |
| Gold | +1.30% | $4,129.35 |
📌 Today’s Focus
Attention now turns to a busy economic calendar. Australian employment data will headline the Asian session before focus shifts to Europe, where the European Central Bank is expected to announce its latest interest rate decision. Traders will also closely watch President Lagarde’s press conference for guidance on the future path of monetary policy. Later in the US session, weekly unemployment claims will provide another update on the health of the labour market, while developments in the Middle East are likely to remain the dominant driver of market sentiment.
Asian Session
🔹 Australia – Employment Change Data
🔹 Australia – Unemployment Rate
European Session
🔹 EU – European Central Bank Interest Rate Decision
🔹 EU – European Central Bank Press Conference
US Session
🔹 US – Weekly Unemployment Claims Data