Daily Summary: NFP Spooks Wall Street, Oil Back Near $100

📈 Stock Market

• Red is the primary color of today's session on Wall Street. Declines are affecting the most important market indices, although their scale remains limited.

• The Dow Jones is down about 1%, while losses on the other flagship indices are significantly smaller.

• The S&P 500 is losing around 0.4%, while the tech-heavy Nasdaq is trading near its opening level.

• One of the reasons for the deteriorating sentiment was Friday's NFP report, which came in substantially stronger than the market expected.

• As a result, expectations grew regarding a 0.25 percentage point interest rate hike by the FOMC at its upcoming meeting.

• Investors are now primarily waiting for CPI and PPI inflation data, which could be crucial for expectations surrounding the Fed's next decision.

• In the Old Continent, today's session presented an exceptionally mixed picture. The French CAC 40 closed in the green, gaining over 0.1%. Meanwhile, the British FTSE 100, German DAX, and Spanish IBEX 35 recorded symbolic declines.

🛢️ Commodities and Precious Metals

• Rising oil prices could further fuel inflation, giving the Fed an even stronger argument to maintain high interest rates.

• Brent crude is approaching the $100 per barrel level, while WTI broke above $92 per barrel.

• A mixed session is also accompanying precious metals today. Gold is falling by about 0.3% and sits below $4,400 per ounce, whereas silver is gaining around 0.4% and holding above $66 per ounce.

🌍 Geopolitics

• Tehran announced the creation of a maritime restricted access zone near the Strait of Hormuz, through which a significant portion of global oil exports flows. Iran wants vessels passing through this area to obtain its approval, which could further hinder shipping and commodity exports.

• Following U.S. attacks on Iranian tankers, Tehran promised a "more intense and painful" retaliation. At the same time, according to Iranian media cited by Al Hadath, Iran presented Washington with new conditions for returning to negotiations. This means that despite the military escalation, both sides still leave open the possibility of resolving the conflict diplomatically.

• The conflict is also expanding into Yemen. Iran-backed Houthis attacked Saudi oil-sector targets, and Saudi Arabia responded with airstrikes. This puts two key trade routes — Hormuz and Bab al-Mandab — at risk, increasing the danger of further disruptions in oil supplies.

• Washington expanded sanctions on the Iranian aviation sector, targeting 36 entities, including airlines as well as foreign suppliers and intermediaries. The U.S. claims that some of them assist Iran in transporting weapons, personnel, and illicit cargo. The sanctions aim to further restrict Tehran's financial capabilities and increase pressure on its authorities.

• Iran's Revolutionary Guard reported the capture of an advanced, unmanned U.S. submarine in the Strait of Hormuz area. The U.S. has not confirmed this report, so for now it should be treated as a claim by the Iranian side. The information comes at a moment of exceptionally high tension between both sides in the Persian Gulf waters.

🪙 Cryptocurrencies

• Indecision is also visible in the crypto asset market.

• Bitcoin is under pressure and down about 0.7%, dropping below the $79,000 level.

• Ethereum is hovering around its benchmark point, trading in the vicinity of the $2,500 level.