Donald Trump announced on Truth Social that a planned military attack on Iran will not proceed, allowing negotiations to continue. This news came just before the US market closed, but it failed to lift investor sentiment, as both the S&P 500 and NASDAQ Composite finished the day lower, down 0.1% and 0.5%, respectively. Notable declines were seen in major tech stocks, including Intel (-0.6%), NVIDIA (-1.3%), and Tesla (-2.9%).
Market reactions indicate a growing skepticism towards Trump’s announcements, with S&P 500 futures also down 0.3%. Asian markets reflected this caution, particularly the KOSPI, which dropped 2.6%, while the NIKKEI 225 fell 0.4% despite better-than-expected GDP growth, as inflation concerns loom. The weakening yen and mixed currency movements further highlight the cautious sentiment.
Overall, the market appears to be grappling with inflation fears and geopolitical uncertainty, suggesting that traders may remain risk-averse in the near term.
Source: xtb.com