
U.S. stock futures moved higher in the past few hours supported by a drop in oil prices after reports that President Donald Trump may be willing to end the war in the Middle East.
Earlier volatility on Moday saw oil spike on geopolitical news before reversing lower, while optimism around progress in peace talks and comments from Fed Chair Jerome Powell suggesting no immediate need for rate hikes helped improve sentiment.
Despite recent market weakness and volatility, investors view the pullback as a normal correction, with focus now shifting to upcoming economic data for further direction.
Nonetheless, uncertainty remains high as the conflict continues to escalate, including attacks on oil tankers near the Strait of Hormuz, raising ongoing concerns about disruptions to global energy flows.
Mixed signals from the U.S. and Iran on negotiations, along with the risk of further escalation, keep markets volatile, with oil still heavily influenced by geopolitical developments and supply risks.
Gold rose toward $4,600 supported by a pullback in the U.S. dollar, driven by easing inflation concerns after reports that the U.S. may scale back the Iran conflict.
The decline in oil prices reduced pressure on yields and the dollar, boosting gold. However, uncertainty around the conflict and expectations of higher interest rates continue to cap upside for the metal.
Overall, while short term support exists, hawkish central bank expectations and USD strength limit further gains, with markets focused on geopolitical developments and upcoming U.S. data.
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