In case markets hadn’t had enough geopolitical yo-yos, the US announced that discussions with Iran, expected on Friday, were cancelled — sending oil prices spiking nearly 3% as President Trump warned that Iran’s Supreme Leader Ali Khamenei “should be very worried.”
The surprise didn’t last long. Minutes later, talks were put back on the table, this time in Oman and without intermediaries. If this latest attempt fails, tensions are likely to escalate further.
Beyond geopolitics, markets are increasingly focused on a massive rotation underway in equities, shifting from high-flying tech back toward defensive blue chips.
Years of elevated valuations are now being tested as markets move into a new phase of the bull cycle, even as major indices remain close to all-time highs.
Despite the risk-off headlines, gold briefly pushed above $5,000 but failed to hold the psychological level, as profit-taking and long-position unwinds kicked in, dragging the metals Market lower.
Bitcoin is also closing below its key $75,000 level and ETH below $2,100 – Not good for Cryptos.
President Trump also commented on his nomination of Kevin Warsh during an NBC interview, insisting Warsh “won’t fail” to deliver rate cuts.
That confidence, however, may prove hard to justify amid recent PMI rebounds — highlighted by Monday’s strong Manufacturing surprise and today’s firmer Services data, with prices paid hitting two-year highs.
