Wall Street began the new trading month on a positive note as Dow Jones futures jumped more than 400 points after U.S. President Donald Trump announced he had called off planned military strikes against Iran. The surprise move eased geopolitical tensions and sparked optimism among investors, while oil prices fell sharply as fears of supply disruptions faded. The development provided much-needed relief for global financial markets after weeks of uncertainty surrounding the Middle East conflict.
Dow Jones Industrial Average futures climbed 413 points, or 0.8 percent, while S&P 500 futures gained 0.6 percent and Nasdaq-100 futures advanced 0.4 percent in early Monday trading. President Trump said discussions between the United States and Iran would resume, reversing expectations of a fresh round of military action that had intensified late last week. The announcement quickly shifted market sentiment, encouraging investors to return to equities after recent volatility driven by geopolitical risks.
The easing tensions triggered a sharp decline in crude oil prices. Brent crude dropped 5.2 percent to $83.39 per barrel, while West Texas Intermediate (WTI) crude fell 6.2 percent to $79.45 per barrel. Treasury yields also moved lower as inflation concerns eased alongside falling energy prices, with the benchmark 10-year U.S. Treasury yield declining to 4.68 percent. Despite the positive reaction, market analysts warned that investors remain cautious, noting that previous attempts at diplomacy have failed to deliver lasting peace in the region.
Investors are also turning their attention to a busy week of economic data that could shape expectations for U.S. monetary policy. Friday’s closely watched July non-farm payrolls report is expected to show the U.S. economy added 87,500 jobs, an improvement from the previous month’s 57,000, while the unemployment rate is projected to edge up to 4.3 percent. The labor market figures are expected to provide fresh insight into the strength of the U.S. economy and influence expectations for future interest rate decisions.
Global markets also reflected mixed investor sentiment. European stocks traded higher, led by Germany’s DAX, which gained 1.3 percent, while France’s CAC 40 advanced nearly 1.1 percent. However, the U.K.’s FTSE 100 slipped slightly. In Asia, trading was mixed as South Korea’s Kospi fell more than 5 percent, surrendering part of its recent record gains, while Japan’s Nikkei 225 also declined. Australia’s S&P/ASX 200 posted modest gains, highlighting the varied global response as investors balanced optimism over easing geopolitical tensions with lingering uncertainty about the broader economic outlook.
Source: cnbc
