- Wall Street is trading in a cautious mood, with major U.S. indices hovering around Friday’s closing levels. The market is clearly lacking a catalyst strong enough to set a clear direction.
- Investors are firmly focused on Wednesday, when earnings results from four members of the Magnificent Seven will be released: Alphabet, Microsoft, Amazon, and Apple. In addition, the Federal Reserve will announce its interest rate decision the same day. Markets widely expect rates to remain unchanged, but the real focus will be on Jerome Powell’s comments and any guidance regarding the future path of monetary policy.
- It is also worth noting that last week the Department of Justice withdrew earlier actions related to the current Fed Chair, easing speculation about potential leadership changes and reducing expectations around a possible nomination of Kevin Warsh.
- On the geopolitical front, Iran has proposed easing tensions in the region by reducing pressure around the Strait of Hormuz, one of the world’s most critical oil shipping routes. According to regional sources, the proposal—delivered via Pakistan—includes lifting the U.S. blockade and a partial de-escalation of military activity.
- A key element of the plan is postponing discussions on Iran’s nuclear program to a later stage of negotiations, effectively separating short-term de-escalation efforts from the longer-term strategic dispute.
- At the same time, Tehran is holding parallel consultations with Russia as part of broader coordination regarding the regional conflict. Iranian Foreign Minister Abbas Araghchi also met with Vladimir Putin in St. Petersburg, stating that the United States has failed to achieve its military objectives, which in his view increases the likelihood of renewed negotiations.
- However, Donald Trump has rejected the proposal in its current form, insisting on a comprehensive agreement covering both the Strait of Hormuz and Iran’s nuclear program, while maintaining pressure on Tehran, though he has also signaled a willingness for direct talks.
- Following the breakdown of diplomatic negotiations, Brent crude surged to its highest level since April 13, briefly moving above $100 per barrel, reflecting a rising geopolitical risk premium tied to escalating tensions in the Middle East.
- European markets also ended the session in negative territory, with most major indices closing lower. The UK’s FTSE 100 fell by more than 0.5%, France’s CAC 40 by around 0.2%, Germany’s DAX by over 0.1%, while Spain’s IBEX 35 finished broadly unchanged.
- Pressure was also visible in precious metals, where gold declined around 0.9% to approximately $4,700 per ounce, while silver dropped more than 1.5%, testing the $75 level.
- A similar tone prevailed in the cryptocurrency market, where major digital assets came under pressure. Bitcoin fell around 1.5% below $77,000, while Ethereum dropped nearly 2.5%, slipping under $2,300.
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