Markets Stabilize as Commodities Extend Retreat

With the Strait of Hormuz reopened, technical talks continuing between the US and Iran, and the US Dollar rallying, energy and metal prices continue to decline this morning. Meanwhile, President Trump has turned his attention to prices at the pump, demanding oil companies bring gasoline prices down with oil already nearly back to pre-war levels.

Stock market action has been mixed overnight but overall, equities appear to be stabilizing after another significant mega-cap and technology selloff yesterday that dragged the NASDAQ 100 down 3.3%.

FedEx beat Street expectations on earnings ($6.31 v. $5.96), suggesting continued resilience in economic activity and shipping demand. However, shares are down 6.4% in premarket trading following softer-than-expected guidance.

NASDAQ futures are up 0.6%, while Dow futures are up 0.1%.

Overseas, markets were mixed. In Asia, the Nikkei fell 0.9%, the Hang Seng gained 0.3%, and South Korea’s KOSPI surged 3.3%. In Europe, the DAX is down 1.0%, while the FTSE is up 0.1%.

Commodities remain under pressure as geopolitical risk premiums continue to unwind. Crude Oil is down 3.0%, approaching US$70.00/bbl, while Gasoline has fallen 2.0% and is trading below US$3.00/gallon. Gold is down 2.1%, Copper is down 1.4%, and Silver is down 4.1%.

In fixed income, the US 10-Year Treasury yield is steady near 4.50%, while the US 30-Year Treasury yield remains near 4.95%. The USD is rallying again today against commodity-linked and major currencies, with the Euro down 0.4% and the Loonie down 0.2%.

Looking ahead, Micron Technology reports earnings after the close this afternoon, providing investors with another important update on demand trends across the semiconductor and AI infrastructure sectors.

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