Good afternoon and welcome to Markets Desk.
Geopolitical risk is back in the driver's seat today after President Trump declared the US-Iran ceasefire finished, warning Tehran that American forces are preparing for another round of strikes. Trump threatened to hit civilian infrastructure including power plants, a significant escalation that rattled markets heading into the afternoon session.
Traders wasted no time repricing risk. The S&P five hundred is off nearly half a percent, the Dow down close to one percent, as investors rotate out of equities on renewed Middle East uncertainty. Energy and defense names are the clear exceptions, while rate-sensitive sectors absorb the most pressure.
The dollar is catching a safe-haven bid in the turbulence, with the DXY index ticking higher on the session. Crude oil is also moving up sharply, which matters for the Fed — higher energy prices feed directly into inflation expectations, and any sustained spike makes it harder for policymakers to justify rate cuts later this year. The market is watching Brent closely.
That's the tape. Markets Desk, signing off the floor.
