The global financial markets are on edge as tensions escalate in the Middle East, with Dow Jones futures rising slightly Sunday night. U.S. officials are urging Israel to show restraint after successfully thwarting an attack by Iran involving drones and missiles.
Israel, along with the U.S. and other allies, managed to shoot down 99% of roughly 350 Iranian drones and missiles. This comes after Tehran vowed retaliation for Israel’s strike on its consulate in Damascus earlier this month. President Biden and fellow Group of Seven leaders have condemned Iran’s attack and are appealing for calm in the region.
Despite the geopolitical tensions, Dow Jones futures climbed 0.2%, S&P 500 futures advanced 0.3%, and Nasdaq 100 futures rose 0.3%. Crude oil futures remained stable, while the 10-year Treasury yield increased to 4.53%. Prices of copper, aluminum, and nickel also saw a jump following new sanctions imposed by the U.S. and U.K. on Russian metals.
In the cryptocurrency market, Bitcoin rose to above $65,500 on Sunday, albeit still below pre-attack levels around $67,000. The stock market saw a sell-off on Friday due to fears of an Iran attack, with the Nasdaq falling for the week despite setting a record close earlier in the week.
Late Friday, Tesla announced a price cut on Full Self-Driving subscriptions, while Salesforce.com is reportedly in talks to acquire data-management software maker Informatica. Key earnings reports from companies like Goldman Sachs, Charles Schwab, ASML, and Taiwan Semiconductor are expected this week.
The CBOE Volatility index spiked on Friday to its highest level since late October, reflecting the market’s fear over the Iran situation and inflation concerns following a hot CPI report. Despite Thursday’s bullish signals, Friday’s losses wiped out gains from earlier in the week.
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