US equities pulled back from recent record highs overnight as hopes for a Middle East de-escalation continued to fade, with Trump saying he expects Iran to compensate the families of those killed in Iranian actions, amid Iran’s own compensation demands. The Dow, S&P 500 and Nasdaq all slipped, with the tech-heavy Nasdaq underperforming as investors weighed the economic and inflation risks of prolonged regional disruption. The increasingly difficult negotiations raised concerns that the Strait of Hormuz could stay closed to shipping for longer, sending oil sharply higher and reviving inflation concerns. Treasury yields rose across the curve, with the stronger yield backdrop supporting the dollar. Gold extended its gains as traders piled into safe-haven assets amid the heightened geopolitical uncertainty.
📊 Equities
US equities pulled back from recent record highs overnight as hopes for a Middle East de-escalation continued to fade. The Dow, S&P 500 and Nasdaq all slipped, with the tech-heavy Nasdaq underperforming as investors weighed the economic and inflation risks of prolonged regional disruption. The Dow eased 0.11% to 53,975, the S&P 500 dipped 0.06% to 7,753, and the Nasdaq fell 0.32% to 26,605.
🛢️ Oil
The increasingly difficult negotiations raised concerns that the Strait of Hormuz could stay closed to shipping for longer, sending oil sharply higher. Brent surged 5.18% to $87.88, while WTI jumped 5.35% to $82.38.
🥇 Gold
Gold extended its gains as traders piled into safe-haven assets amid the heightened geopolitical uncertainty, rising 1.09% to $4,389.19.
💵 FX & Bonds
The Strait of Hormuz concerns revived inflation worries, with Treasury yields rising across the curve and the stronger yield backdrop supporting the dollar. The USD rose 0.28% to 99.82, the 2-year Treasury yield rose 4.4 bps to 4.239%, and the 10-year Treasury yield rose 6.1 bps to 4.707%.
| Market | Change | Close |
|---|---|---|
| Dow Jones | -0.11% | 53,975 |
| S&P 500 | -0.06% | 7,753 |
| Nasdaq | -0.32% | 26,605 |
| USD Index | +0.28% | 99.82 |
| US 2Y Treasury | +4.4 bps | 4.239% |
| US 10Y Treasury | +6.1 bps | 4.707% |
| Brent Crude | +5.18% | $87.88 |
| WTI Crude | +5.35% | $82.38 |
| Gold | +1.09% | $4,389.19 |
📌 Today’s Focus
Geopolitics remains the key driver heading into today, with traders watching for any Strait of Hormuz developments, while the RBA’s interest rate decision is also in focus during the Asian session.
🔹 Japan – Bank Holiday
🔹 Australia – RBA Interest Rate Decision
🔹 Australia – RBA Press Conference
🔹 US – Existing Home Sales