The Market Brief
Hey team. U.S. stock index futures staged a recovery on Monday after oil prices pulled back from sharp gains earlier, with investors awaiting updates on the geopolitical front.
Let’s see what’s ahead for this market!
Impact Snapshot
🟥 Services PMI - 9:45am
Macro Viewpoint
U.S. equity futures managed to close the early gap, likely because of the limited nature of U.S. strikes and prevailing skepticism that the Strait of Hormuz will end up being closed. Once geopolitics fades from the headlines, markets will go back to focusing on the growth trajectory, fiscal policy, and trade/tariffs.
The market’s reaction has been generally muted since Israel’s initial assault on Iran this month. Even after falling for the past two weeks, the S&P 500 is only about 3% below its all-time high from February.
Oil prices briefly hit a five-month high amid rising concerns around Iran shutting the Strait of Hormuz, a key oil supply route.
As markets grapple with existing price pressures from Trump's tariffs, the oil price volatility adds a new layer of inflation concerns, with the 90-day suspension for U.S. tariffs nearing.
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