Market Commentary - Foreign Markets
Oil Prices Cool, Markets Climb Amid Iran Tensions As on : 17-Mar-26  11:36

The rising oil prices drove the market. S&P 500 futures were near the flat line Monday night after the major averages bounced in light of cooling oil prices. S&P 500 futures slipped 0.1% while Nasdaq 100 futures declined nearly 0.2%. Futures tied to the Dow Jones Industrial Average lost 47 points (0.1%).

Benchmark U.S. crude fell 5.3% to $93.50 after topping $102 while Brent dropped 2.8% to $100.21 from $106.50'a reprieve after prices spiked from $70 amid U.S.-Israeli attacks on Iran. Iran has nearly halted Strait of Hormuz traffic, stranding a fifth of global oil and forcing producers to cut output, with fears of prolonged closure fueling debilitating inflation.

Investors are awaiting this year's second Federal Reserve interest rate decision which is scheduled for Wednesday. Expectations for rate cuts have diminished as inflation worries have ramped up since the start of the Iran war, according to CME Group's FedWatch tool.

Tech sector led the gains after Each of the 11 S&P sectors closed higher. Nvidia shares advanced about 1.7% after CEO Jensen Huang said during the company's annual GTC conference that he expects $1 trillion in orders for Nvidia's Blackwell and Vera Rubin systems through 2027. On the earnings front, Lululemon, Docusign and Oklo are expected to post results Tuesday.

Asian markets broadly rose, tracking gains in Wall Street. Asia-Pacific markets rose as auto and tech stocks gained after Nvidia announced robust revenue forecast for its key chips, and partnerships with carmakers from the region. Japan's Nikkei 225 added 0.75% while the Topix jumped more than 1%. South Korea's Kospi rose 2.94% while the small-cap Kosdaq added 1.53%.

European stocks regained ground as investors continue to weigh the ongoing unrest in the Middle East and elevated global oil prices. The pan-European Stoxx 600 rose 0.77% in afternoon trading, with most major bourses and sectors in the green. The U.K.'s FTSE 100 rose by 0.9%, Germany's DAX was up 1% and France's CAC 40 was up 0.67%. Italy's FTSE MIB was last seen up 0.6%.

Treasury yields dropped to start the week as investors tracked lower global crude oil prices ' dimming the outlook for faster inflation for now ' amid the continued U.S.-Iran war and looked ahead to the Federal Reserve's two-day policy meeting this week. The benchmark 10-year Treasury yield was more than 5 bps lower at 4.22% while the 30-year Treasury bond shed more than 4 bps to yield 4.86%. The 2-year Treasury note yield was down more than 5 bps, reaching 3.68%.

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