US equities sold off again overnight on escalating Middle East tensions and renewed AI valuation concerns, with the Nasdaq leading declines. Treasury yields rose for a fourth session, with the 10-year at an 18-month high, and the dollar strengthened. Brent broke above $100 a barrel for the first time in months, while gold fell.
📊 Equities
US equity markets endured another difficult session overnight as investors continued to reduce risk exposure amid escalating tensions in the Middle East and renewed concerns over elevated AI-related valuations and spending. The technology sector bore the brunt of the selling, with the Nasdaq leading declines, while the S&P 500 and Dow Jones also fell. The Dow slid 0.97% to 51,711, the S&P 500 dropped 1.21% to 7,408, and the Nasdaq fell 2.15% to 25,137.
🛢️ Oil
Energy markets were once again the standout performer. Brent crude surged to settle above the psychologically important US$100 per barrel level for the first time in months, while WTI also climbed sharply. The rally followed reports of increased Houthi attacks on Saudi shipping in the Red Sea, with President Trump reiterating that Iran would face consequences should the attacks continue to escalate. Brent rose 6.85% to $100.51, while WTI gained 6.17% to $92.19.
🥇 Gold
Gold failed to benefit from the heightened geopolitical uncertainty, instead falling as the stronger US dollar and rising Treasury yields reduced the appeal of the non-yielding precious metal. Gold fell 1.99% to $4,047.15.
💵 FX & Bonds
Bond markets remained under pressure as Treasury yields pushed higher for a fourth consecutive session, with the US 10-year Treasury yield reaching its highest level in around 18 months, as investors continued to price in persistent inflation risks and increased government borrowing. The stronger yield environment helped lift the US Dollar Index, keeping the greenback close to its yearly highs. The USD Index rose 0.32% to 101.45, the 2-year Treasury yield rose 5.0 bps to 4.348%, and the 10-year yield rose 3.9 bps to 4.693%.
| Instrument | Change | Last |
|---|---|---|
| Dow | -0.97% | 51,711 |
| S&P 500 | -1.21% | 7,408 |
| Nasdaq | -2.15% | 25,137 |
| USD Index | +0.32% | 101.45 |
| Treasury 2Y | +5.0 bps | 4.348% |
| Treasury 10Y | +3.9 bps | 4.693% |
| Brent | +6.85% | $100.51 |
| WTI | +6.17% | $92.19 |
| Gold | -1.99% | $4,047.15 |
📌 Today’s Focus
Attention now turns to a busy macroeconomic calendar, with Flash PMI surveys due across Europe, the UK and the United States. However, with geopolitical developments continuing to drive market sentiment, traders are likely to remain focused on any further updates from the Middle East.
European Session
🔹 UK – Retail Sales Data
🔹 France – Flash Manufacturing and Services PMI Data
🔹 Germany – Flash Manufacturing and Services PMI Data
🔹 UK – Flash Manufacturing and Services PMI Data
US Session
🔹 US – Flash Manufacturing and Services PMI Data
🔹 US – New Home Sales Data