The S&P 500 Index is up 0.43% and the Dow Jones is up 0.20%, reflecting market gains amid reduced concerns over oil supply disruptions following US airstrikes on Iranian nuclear facilities. Both September E-mini S&P futures and September E-mini Nasdaq futures are also showing gains, up 0.50% and 0.70%, respectively.
The June S&P manufacturing PMI remained steady at 52.0, surpassing expectations of a decrease, while May existing home sales unexpectedly increased by 0.8% month-over-month to 4.03 million, defying forecasts of a decline. In light of these economic indicators, Fed Governor Bowman indicated support for a potential rate cut at the upcoming FOMC meeting, contributing to a decline in the 10-year T-note yield, which is now at 4.33%.
Iran has vowed retaliation for the US strikes, with tensions escalating as Iranian forces continue targeting Israel. Iran’s army stated the US would face “severe consequences,” and any action blocking the Strait of Hormuz, which accounts for 20% of global crude shipments, could spike oil prices significantly, potentially reaching $120 to $150 per barrel.
