📊 Markets Rally on Iran De-escalation, Rate Cut Hopes Gain Traction
• U.S. equities: S&P 500 closed above 6,000 as Middle East tensions eased; no U.S. casualties from Iran’s missile launches fueled risk-on sentiment.
• Fed outlook shifts: Dovish signals grow as Governor Bowman opens door to a July cut; Powell testimony in focus.
• Yields & housing: Bond yields fell sharply; existing home sales rose 0.8% in May despite affordability strain.
• Commodities: Gold surged to $3,385 on safe-haven demand; oil reversed from $76 to $68 as supply fears faded.
• Europe: France’s private sector remained in contraction; Germany’s PMIs signaled early signs of recovery; UK inflation pressures eased.
• Middle East tensions: Iran’s retaliatory strikes drew limited U.S. response; Israel targeted Tehran’s Evin prison, keeping geopolitical risks elevated but contained.