US stocks finished higher on Friday as investors embraced a more optimistic tone on the Middle East, with a successful SpaceX launch adding further support to risk appetite. Commodity markets reacted strongly to Monday’s US-Iran deal, with oil dropping sharply as the Strait of Hormuz reopened and gold rising 1.74% on a weaker dollar. The Federal Reserve meeting this week remains the key focus for markets.
📊 Equities
US stocks finished higher on Friday as investors embraced a more optimistic tone surrounding developments in the Middle East. Risk appetite was also supported by the successful SpaceX launch, helping major US indices extend their gains into the end of the week. Stocks pushed higher again on Monday following the US-Iran deal, with investors now focused on assessing the terms of the agreement.
🛢️ Oil
Commodity markets reacted strongly to the US-Iran deal reached shortly after market open on Monday. Oil dropped sharply, with Brent falling 6.49% and WTI declining 7.19% from Friday’s open, as the Strait of Hormuz reopened to shipping.
🥇 Gold
Gold rose 1.74% as a weaker dollar weighed in its favor.
💵 FX & Bonds
Despite the improvement in sentiment, US Treasury yields moved higher on Friday as traders began positioning ahead of this week’s Federal Reserve meeting.
📌 Today’s Focus
The Federal Reserve meeting this week remains the key fundamental focus for markets, with traders watching for any shift in the policy outlook following recent strong employment data.