US equity markets pushed higher overnight as softer-than-expected inflation data helped improve investor sentiment despite ongoing Middle East tensions. The lower CPI reading eased concerns over further Fed tightening and scaled back expectations of a July rate hike. Treasury yields fell across the curve, the dollar weakened, oil climbed to its highest level in over a month and gold rallied on the softer greenback.
📊 Equities
US equity markets pushed higher overnight as softer-than-expected inflation data helped improve investor sentiment despite ongoing tensions in the Middle East. The lower inflation reading eased concerns over further Federal Reserve tightening, with markets scaling back expectations of a July rate hike. The Nasdaq once again led the gains, rising 0.90% to close at 26,107, while the S&P 500 added 0.38% to finish at 7,543. The Dow Jones was little changed but still managed to close marginally higher, gaining 0.02% to 52,508.
🛢️ Oil
Oil prices climbed to their highest levels in over a month after the United States reimposed its naval blockade on Iran, reigniting concerns over potential supply disruptions through the Strait of Hormuz. Brent crude rose 1.72% to US$84.73 per barrel, while WTI gained 0.71% to US$79.90.
🥇 Gold
Gold pushed higher, rallying 1.33% to US$4,053.89 per ounce as the weaker US dollar provided additional support.
💵 FX & Bonds
Treasury yields moved lower across the curve, with the 2-year yield falling 8.9 basis points to 4.193% and the 10-year yield declining 3.5 basis points to 4.589%. The US dollar weakened against most major currencies, with the Dollar Index slipping 0.33% to 100.94.
| Market | Change | Close |
|---|---|---|
| Dow Jones | +0.02% | 52,508 |
| S&P 500 | +0.38% | 7,543 |
| Nasdaq | +0.90% | 26,107 |
| USD Index | -0.33% | 100.94 |
| US Treasury 2Y | -8.9 bps | 4.193% |
| US Treasury 10Y | -3.5 bps | 4.589% |
| Oil – Brent | +1.72% | $84.73 |
| Oil – WTI | +0.71% | $79.90 |
| Gold | +1.33% | $4,053.89 |
📌 Today’s Focus
Attention is likely to remain on developments in the Middle East through the Asian and European sessions today. However, the focus will shift back to economic fundamentals during the US session with the release of US Producer Price Index data, followed by the Bank of Canada’s interest rate decision and press conference, all of which could generate increased volatility across currency, bond and equity markets.
🔹 US – Producer Price Index (PPI)
🔹 Bank of Canada – Interest Rate Decision
🔹 Bank of Canada – Press Conference