The S&P 500 Index is up 1.15%, the Dow Jones is up 1.09%, and the Nasdaq 100 is up 1.49% as markets recover from last Friday’s selloff. This rebound is fueled by hopes that the recent hostilities between Israel and Iran will remain contained. Key oil export infrastructures in Iran have not been impacted, and no blockage of the Strait of Hormuz has occurred, despite disruptions to navigational signals.
Hostilities have continued for four days, with Iran launching drones and missiles and Israel responding with attacks targeting military officials. The Iranian government indicated a willingness to negotiate if U.S. involvement in attacks ceases, while Israeli Prime Minister Netanyahu remains committed to continued strikes until Iran’s nuclear program is dismantled.
US June Empire manufacturing index unexpectedly fell to -16.0 from -6.8, prompting considerations of negative economic impact. Markets are also awaiting the G-7 meeting and a raft of economic reports coming this week, including May retail sales and manufacturing production data.
