US stock markets jumped sharply at the opening bell, but now the signals are mixed as new diplomatic issues come to light.
The early surge in equity futures came from a more optimistic geopolitical outlook, mainly after President Trump’s weekend announcement predicting the full reopening of the Strait of Hormuz in the next 30 days.
But as traders come back from their Memorial Day break and more money enters the market, it is clear that reaching a formal peace is more complicated than the headlines first made it seem.
Crude Oil fell 7% during yesterday’s quiet holiday session, but energy prices are rebounding strongly today.
Ongoing issues, especially about frozen Iranian funds and where enriched nuclear material will go, are pushing WTI crude higher.
This sharp rise in energy costs is adding back to prior worries on the feasibility of a proper peace deal and causing trouble in the wider financial markets.
As a result, after briefly reaching new all-time highs before the market opened, the main US indices are now pulling back from their morning highs, particularly the Dow.
Now, let’s take a look at the intraday charts and trading levels for the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500.
