Global Markets Overview: Geopolitical Tensions Weigh on Equities Amid Inflation Concerns

Index Update
US equity markets retreated modestly from record levels on Monday, with the S&P 500 and Nasdaq 100 declining 0.3% and the Dow Jones Industrial Average falling by nearly 200 points. The pullback was driven by rising geopolitical tensions with Iran, which heightened concerns over persistently elevated energy prices and inflationary pressures. Conflicting reports regarding attacks in the Strait of Hormuz added to market uncertainty, supporting expectations of a more hawkish Federal Reserve stance. Technology stocks led the decline amid cautious sentiment, while financial stocks also weakened due to rising bond yields. In contrast, Palantir gained 3% ahead of its earnings announcement.

Market Movers
Among individual stocks, SKK Holdings Limited recorded an exceptional surge of 596.53%, followed by CNS Pharmaceuticals, Inc., which advanced 239.23%. On the downside, Jaguar Health, Inc. declined by 51.42%, while AIOS Tech Inc. dropped 29.45%, marking them as the session’s biggest losers.

Commodities Update
Crude oil prices declined on Tuesday after a strong rally in the previous session, with WTI trading below $104 per barrel and Brent falling under $113. Despite the pullback, markets remained highly sensitive to ongoing geopolitical developments in the Middle East, particularly renewed hostilities in the Strait of Hormuz involving the US and Iran. Incidents such as drone and missile interceptions, attacks on commercial vessels, and a fire at the UAE’s Fujairah oil terminal have raised concerns over supply disruptions. Although efforts are underway to restore safe shipping routes, continued risks are likely to sustain volatility in oil markets.

Precious metals also weakened, with gold trading near $4,550 per ounce and silver around $73, both declining nearly 2% in the prior session. Rising energy prices and inflation concerns pushed global bond yields higher, increasing expectations of tighter monetary policy and weighing on non-yielding assets. Gold and silver have now declined significantly since the onset of the conflict in late February.

Macro Updates
The US dollar index strengthened, hovering around 98.5 as safe-haven demand increased amid escalating geopolitical tensions. Higher oil prices and rising Treasury yields reinforced expectations of potential Federal Reserve rate hikes to manage inflation. Market participants are closely monitoring upcoming Fed speeches and key economic indicators, particularly the April jobs report, which is expected to show slower employment growth compared to March.

Meanwhile, US factory orders rose strongly by 1.5% month-over-month in March 2026, surpassing expectations and reflecting broad-based strength across manufacturing sectors. Growth was driven by a rebound in durable goods, particularly in the technology segment due to increased AI-related investments, along with gains in transportation equipment and nondurable goods. The data indicates continued resilience in the manufacturing sector.

Bonds Commentary
The yield on the US 10-year Treasury note remained elevated near 4.44% after a recent increase, supported by rising energy prices and inflation concerns linked to geopolitical tensions. Strength in oil prices, the US dollar, and bond yields reflects market expectations of tighter monetary policy. Investors are now focused on upcoming economic data releases and Federal Reserve commentary for further direction.

Futures Update
US equity futures moved slightly higher by approximately 0.3% on Tuesday, approaching recent highs as easing oil prices provided some relief despite ongoing geopolitical risks. Elevated bond yields and persistent inflation concerns continue to support expectations of potential rate hikes. On the corporate front, Pfizer posted modest gains following earnings, Intel surged on potential collaboration with Apple, and Amazon advanced on expansion in logistics services, while Palantir declined after disappointing guidance expectations.

After a directionless start to Monday’s session, stocks gradually moved lower, with the major indices closing on a weaker note and the Dow posting a notable decline. The pullback on Wall Street coincided with a sharp rise in crude oil prices, as U.S. crude futures climbed more than 3 percent during the day. By the close, the broader market finished mixed, with the S&P 500 declining 29.35 points, or 0.41 percent, to settle at 7,200.76. Technically, the S&P 500 continues to trade in a strong uptrend above key moving averages, but momentum is beginning to cool as RSI hovers near overbought territory; in the near term, resistance is likely around the 7,200–7,250 zone, where rejection could lead to a pullback toward 7,150 or 7,050, while a decisive breakout above 7,250 may push the index toward 7,300, maintaining a bullish bias but favoring a buy-on-dips approach rather than chasing strength.