US indices closed with moderate gains, led by the US2000 futures, which rose approximately 0.9%. A potential peace deal between the US and Iran, facilitated by Pakistan, has generated optimism, with expectations of reduced hostilities and reopening of the Strait of Hormuz. Meanwhile, Nvidia’s strong earnings report failed to boost its stock, which fell over 1%, while Walmart’s shares dropped nearly 7% amid cost concerns despite solid results.
In macroeconomic news, building permits surpassed expectations at 1.44 million, and jobless claims were in line with forecasts. The manufacturing PMI showed strength, climbing to 55.3, although the services PMI dipped to 50.9. In Europe, indices ended flat, with futures showing improved sentiment due to the peace deal news, while Eurozone PMI data disappointed.
A key takeaway for market professionals is the mixed signals from earnings reports and macro data, highlighting the need for cautious positioning as geopolitical developments and economic indicators continue to influence market sentiment.
Source: xtb.com