The overnight spike to 4-year highs came with significant angst, as global assets sagged from continued stagflation pricing, with safe-haven assets like Gold and US Treasuries also taking significant hits.
S&P 500 futures were down 165 points at one point, the largest drop since October 2025 – and this is not such a common move!
Luckily, the Market-shaking rise did not extend further. Oil is now down 19% from its highs! (but remains about 5% above its Friday close)
The reversal brought a flurry of dip-buying across all assets, which initially suffered from the futures session’s movements.
US Equities are now looking to fill their wide overnight gaps in an impressive rebound.
However, some doubts remain: Stagflation fears could get extended as long as Oil remains above $85 per barrel; as the War extends and is now projected to last about five more weeks, the prolonged expectations add to further concerns of a more.
Iran hasn’t shown signs of de-escalation, having also named Ali Khamenei’s successor, his son Mojtaba Khamenei.
The US and Israel also won’t stop until “unconditional surrender”, hence, tracking their progress against IRGC targets is key to attempting to time a resolution to the conflict.
The Strait of Hormuz de facto closure remains the key inflexion point, so traders should watch its traffic (or lack thereof) closely.
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