Public Markets 8-Hour Briefing
×Market Turmoil
European stocks tumbled as conflict in the Middle East intensified, casting doubt over inflation and monetary policy outlooks. The S&P 500 fell sharply as oil prices jumped amid the widening Middle East war, with Nasdaq futures dropping 2% and Treasury yields rising further above 4%. US Treasuries slumped for a second day as traders slashed bets on the extent of interest-rate cuts expected from the Federal Reserve this year.
Oil & Energy Crisis
Oil prices climbed amid Iran conflict, with Brent futures trading at the biggest premium to the Middle Eastern Dubai marker since 2022 after the global crude benchmark surged following attacks on Iran. Qatar shut LNG production at the world's largest export facility after it was targeted in an Iranian drone attack, causing European natural gas prices to jump more than 40% to the highest since 2023. Asian oil refiners are considering whether to cut run rates or bring forward maintenance as the widening Middle East war and difficulties shipping through the Strait of Hormuz threaten their access to crude supplies.
Currency & Bond Markets
The dollar surged higher, regaining its key safe-haven status as the deepening war in Iran stoked inflation fears and spurred demand for havens. European bonds extended their selloff as turmoil in the Middle East drove up energy prices and a senior central banker warned that a prolonged conflict could bring stagflation to the euro zone. Emerging-market assets extended losses as the war in Iran impedes a key route for global energy supplies, lifts the dollar and forces investors to adjust to the risks of resurgent inflation.
Corporate News
Ziff Davis has struck a deal to sell its connectivity division to Accenture for $1.2 billion in cash. Medline's PE backers started a stake sale worth $3.4 billion, capitalizing on a rally in the medical supplier's stock since its debut late last year. Rosebank Industries plans to buy two specialty manufacturing companies in the US for $3.05 billion, tapping equity markets to help fund the deal. Kuehne + Nagel plans to cut more than 2,000 jobs as it tackles a glut of capacity in the transportation market, even as the war on Iran makes the global cargo outlook more unpredictable.
Individual Stock Moves
Best Buy surged on earnings beat, though the company projected weak growth for the year ahead as it expects consumers to continue hunting for value. Target shares rose as the big-box retailer unveiled strong full-year guidance. Pinterest stock jumped 10% on a $1 billion Elliott investment and buyback plan. Palantir is back on Wall Street's buy list after a 38% plunge, as the potential for growth in the company's defense business brings enthusiasm back to the stock.
Geopolitical Impact
Egypt's pound briefly weakened past the milestone of 50 per dollar before paring some losses, signaling investors' fears over the prospect of a prolonged conflict in the Middle East. Indonesian petrochemical maker PT Chandra Asri Pacific declared force majeure, citing disruption to feedstock shipments through the Strait of Hormuz following the outbreak of the Iran war. Dubai's fleet of A380 superjumbo jets was scattered across the globe as airspace in the Middle East remained largely closed for civil aviation.
Economic Outlook
Traders ditched bets on a second BOE cut as inflation fears spiral amid the deepening conflict in the Middle East. South African interest-rate traders moved to price in a chance of a South African interest-rate hike later this month as the Iran conflict pushed oil prices higher, reviving concerns about inflation. European Bank Stocks' Mideast selloff is overdone, according to analysts at JPMorgan Chase & Co.