US equities surged nearly 3% on renewed hopes that tensions between the US and Iran could ease, lifting investor sentiment across global markets. Oil prices pulled back, the US dollar weakened, and the euro gained as traders reassessed central bank expectations. A more cautious tone from the Federal Reserve, combined with softer US economic data, contrasted with rising inflation pressures in Europe—fueling moves in FX markets.
But is this rally built to last? Much will depend on energy prices and whether geopolitical risks continue to ease or flare up again. With the Strait of Hormuz remaining a key pressure point – and closed ! - volatility could return quickly.
Meanwhile, equity markets—especially cheapened tech valuations – look increasingly appetizing to investors.
Watch the full episode to find out more!
Intro0:51 Optimism returns on hope that Iran war will end soon
1:30 US dollar falls
3:33 EURUSD rebounds
4:55 US crude volatility remains, however
7:44 Nasdaq is at cheapest vs S&P500 since 2019!
