Markets Rebound as Investors Downplay Iran-Israel Risks; Oil Drops, Stocks Climb – Asia Market Wrap
US stock futures staged a rebound and oil prices fell as investors grew confident that the conflict between Israel and Iran will remain contained.
S&P 500 contracts rose 0.5% as dip-buyers moved in following a pullback in the US benchmark of more than 1% on Friday. European and Asian stocks also advanced. Brent crude dropped 0.8% after initially spiking on the back of weekend attacks between the two arch adversaries.
Gold slipped 0.3% from an all-time high. Treasuries retreated on concerns that persistently higher energy prices could stoke inflation, with the 10-year yield rising three basis points to 4.43%.
The outbreak of hostilities between Israel and Iran on Friday disrupted the momentum that had driven the S&P 500 back near record levels and reversed April’s tariff-fueled losses. While markets initially adopted a cautious, risk-off stance to assess how the conflict might unfold, sentiment improved on Monday as investors grew more confident that the attacks were unlikely to draw in more parties.
Oil gave up another sharp gain on Monday as ongoing attacks have so far spared key export infrastructure. There’s also been no blockage of the vital Strait of Hormuz, the narrow waterway that handles roughly a fifth of the world’s daily crude shipments.
