Global Markets Mixed Amid Tech Earnings Divergence and Rising Geopolitical Tensions

Index Update
S&P 500 and Nasdaq 100 futures moved higher as investors assessed a mixed set of earnings from major technology companies. Alphabet and Amazon posted strong gains supported by robust cloud performance, while Microsoft saw modest upside driven by solid Azure growth. In contrast, Meta declined following concerns around capital expenditure and user trends. In the previous session, the Dow and S&P 500 closed slightly lower, while the Nasdaq remained marginally positive, as markets digested the Federal Reserve’s decision to keep interest rates unchanged alongside notable policy dissent amid geopolitical uncertainty.

Market Movers
Among individual stocks, Rising Dragon Acquisition Corp. recorded the strongest gains, surging 318.57%, followed by Akanda Corp., which advanced 48.6%. On the downside, Magnachip Semiconductor Corporation declined 31.83%, while Cheetah Net Supply Chain Service Inc. dropped 28.3%, making them the session’s biggest laggards.

Commodities Update
Crude oil prices remained volatile amid escalating geopolitical tensions, with WTI briefly touching USD 111 before easing, while Brent stabilized near USD 110.5 after reaching its highest level since June 2022. Market sentiment was influenced by reports of potential U.S. military action against Iran, raising concerns of renewed conflict. Despite a ceasefire, disruptions in the Strait of Hormuz have significantly constrained global supply, prompting the International Energy Agency to highlight an unprecedented supply shock. Meanwhile, U.S. crude exports have surged to record levels as global buyers seek alternative sources.

Gold and silver prices advanced, with gold nearing USD 4,600 per ounce and silver approaching USD 73, as both rebounded from recent lows amid heightened geopolitical risks. Ongoing tensions in the Middle East and the near-closure of the Strait of Hormuz have increased market uncertainty, leading investors to scale back expectations of near-term rate cuts and instead price in the possibility of a rate hike by 2027. The Federal Reserve maintained its policy stance, though dissent among policymakers signaled increasing divisions over the future outlook.

Macro Updates
The U.S. dollar index hovered near 99, sustaining recent gains following the Federal Reserve’s hawkish stance despite unchanged rates. Dissent from policymakers underscored internal divisions, while markets have fully ruled out rate cuts this year and are beginning to consider the possibility of a rate hike in 2027. The dollar was further supported by elevated geopolitical tensions, with attention also turning to upcoming policy decisions from the European Central Bank and the Bank of England.

Bonds Commentary
The yield on the U.S. 10-year Treasury note remained around 4.42%, holding near one-month highs as the Federal Reserve signaled a more cautious stance on inflation. Policymaker dissent highlighted growing uncertainty, particularly in light of geopolitical risks linked to the Iran conflict. Markets have adjusted expectations by removing the likelihood of rate cuts this year and beginning to factor in a potential rate increase in 2027. Persistent inflation concerns and geopolitical developments have continued to support higher yields.

Futures Update
U.S. equity futures traded higher, with major indices gaining between 0.3% and 0.8% as investors balanced mixed technology earnings with rising energy prices. Alphabet and Amazon led pre-market gains on strong results, while Meta declined sharply due to concerns around increased AI-related spending. Microsoft edged lower despite meeting expectations, and Apple traded slightly higher ahead of its earnings. Elevated oil prices, driven by ongoing U.S.–Iran tensions, continue to pose risks to near-term economic growth.

Stocks lacked clear direction on Wednesday following the previous session’s pullback, with both the Nasdaq and the S&P 500 fluctuating around the flatline throughout the day before ending on a mixed note. The S&P 500 edged down 2.85 points, or 0.04%, to settle at 7,135.96. From a technical perspective, the index has moved above a key resistance level, indicating potential for further upside. However, the 14-day RSI has pushed into the overbought zone, signaling that upside momentum remains strong but could be vulnerable to short-term consolidation or a mild pullback. Overall, the trend bias remains positive while the index holds above the 6,980 support zone, with immediate resistance seen near the 7,200–7,250 range.