As the US Ends its Strikes Against Iran, Stocks Rise and Oil Falls – Europe Market Wrap

Global equities recovered after a swift conclusion to the latest US strikes on Iran boosted hopes that diplomatic talks could resume and that the Strait of Hormuz would remain open. S&P 500 futures rose 0.7%, while Nasdaq 100 futures gained 1.2% as investors bought the recent dip. European shares advanced 0.8%, led by utilities.

Oil reversed earlier gains as concerns over an immediate escalation faded, with Brent falling 1.2% to around $92 a barrel. Treasuries rallied across the curve, pushing the 10-year yield 3 bps lower to 4.52%, while Bitcoin headed for its first gain in three sessions.

Attention now turns to the ECB, which is expected to deliver its first rate hike since 2023 amid concerns that the conflict-driven rise in energy prices could fuel inflation. Markets will closely watch Lagarde’s comments for guidance on the policy outlook.

Meanwhile, AI-linked stocks remain volatile after leading global markets to record highs. Recent swings in the sector have raised questions about stretched valuations and whether the rally has moved ahead of fundamentals.