Equities Rallied as Oil Slid on De‑Escalation Hopes

STATE OF THE MARKETS

Equities rallied as oil slid on de‑escalation hopes. US stocks ripped higher on Monday, snapping their recent losing streak as signs of potential de‑escalation in the Iran conflict and a sharp pullback in oil prices eased growth and inflation fears. The Dow Jones Industrial Average jumped about 1.4% to roughly 46,200, its best day in six weeks, while the S&P 500 climbed around 1.1% and the tech‑heavy Nasdaq also gained about 1.4% as buyers stepped back into large‑cap tech, chipmakers, and AI‑linked names. The Russell 2000 outperformed with a rally of roughly 2.3%, as small caps and higher‑beta cyclicals caught a strong bid on the prospect that the worst‑case war and oil scenarios might be avoided. 

In the commodity space, crude oil reversed lower, taking some of the acute inflation shock out of the market narrative. Brent retreated back below the $100‑a‑barrel mark after trading well above that level last week, while WTI similarly eased, as headlines around possible US‑Iran talks and delayed strikes reduced the immediate war premium in prices. Even after the pullback, crude remains elevated versus earlier in the year, but the move down helped lift energy‑sensitive sectors and calmed fears of an imminent hit to global growth from “runaway” oil.

Gold and other precious metals lost some altitude as haven demand faded with the risk‑asset relief rally and softer oil. Prices remained elevated on a multi‑month view, but the improved sentiment around Iran and the rollback in crude saw some investors rotate out of bullion and back into equities, especially in growth and cyclical pockets. With the US dollar still underpinned by higher yields and policy‑divergence themes, the metals complex continues to trade in a choppy range, balancing residual war and inflation hedging against a firmer greenback.

In the FX space, the improvement in risk sentiment lent support to pro‑cyclical currencies and high‑beta FX. The Canadian dollar and Aussie found some relief as equities and broader risk assets rallied, even though the dip in oil prices limited the immediate boost for the Loonie. The Dollar Index stayed broadly supported by US yield differentials but backed off its recent peaks intraday as haven flows ebbed and investors tentatively re‑embraced risk. Safe‑haven demand for the Swiss franc and yen softened, while the Euro and Sterling traded mixed, torn between the global risk‑on tone and ongoing domestic growth and policy uncertainties.

 

G8 CURRENCIES SENTIMENTS

ST GBP EUR USD CHF NZD JPY AUD CAD ST
MT GBP EUR USD JPY NZD CHF AUD CAD MT
LT AUD CHF GBP EUR USD CAD NZD JPY LT
** ST refers to Short-Term daily turnover, MT is Medium Term weekly 
and LT refers to Long-Term monthly turnover.

WALL ST. TOP FIVE INFLOWS

TICKER LAST PRICE

%CHANGE

VOLUME $ INFLOWS
PLTR 160.84 + 6.74 57.51M + 205.77M
TSM 338.45 + 2.80 15.86M + 151.28M
SMCI 21.58 + 5.11 114.27M + 127.47M
CPHR 255.05 + 0.56 9.21M + 120.82M
AVGO 322.51 + 4.08 27.37M + 117.48M
** tickers with total inflows but block orders outflows are not included

WALL ST. TOP FIVE OUTFLOW

TICKER LAST PRICE

% CHANGE

VOLUME $ OUTFLOW
NVDA 175.64 + 1.70 182.84M – 596.89M
MU 404.35 – 4.39 54.81M – 270.99M
AMD 202.68 + 0.67 31.86M – 238.37M
XOM 161.13 + 0.91 25.02M – 176.00M
CVX 205.21 + 1.73 15.74M – 97.22M
** tickers with total outflows but block orders inflows are not included



 

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