US Stocks Close Higher on Peace Hopes – Nasdaq up 1.4%
Financial markets experienced another highly volatile trading session overnight, with sharp swings across financial products as investors reacted to ongoing developments in the conflict in the Middle East. Despite significant intraday losses earlier in the session, US equity markets recovered strongly to close in positive territory after comments from President Trump raised hopes that the conflict could be approaching a resolution. The Dow Jones finished the day up 0.50% to close at 47,740, while the S&P 500 gained 0.83% to close at 6,795, while the tech-heavy Nasdaq rose 1.38% to close at 22,695. Currency markets also experienced choppy conditions throughout the session. The US dollar ultimately finished slightly lower on the day, with the DXY easing 0.12% to 98.74 after experiencing significant intraday volatility. US Treasury markets also saw yields drift lower by the close despite earlier fluctuations. The yield on the 2-Year Treasury note fell 2.4 basis points to 3.536%, while the benchmark 10-Year yield declined 4.3 basis points to finish at 4.096%. Oil saw huge moves, but both the major benchmarks eventually closed slightly lower, Brent crude down 4.88% at $88.09, while WTI crude fell 7.22% to close at $84.37. Precious metals also moved lower in whippy markets, with gold declining 0.64% to close at $5,136.91.
Oil to Remain in Focus in Days Ahead
Oil markets were once again the centre of attention for investors in trading yesterday and look likely to remain so in the coming days and weeks. Both major crude benchmarks surged to levels approaching $120 per barrel at the height of the day yesterday before reversing sharply following the more positive updates on the conflict. Both major benchmarks experienced unprecedented trading ranges of more than 40% during the day, and traders are expecting to see more volatility as we progress through the day, with percentage moves likely on any significant update on the conflict. It is very hard to call technical levels in news- and flow-driven markets like we are experiencing at the moment, but in WTI the 200 Day Moving Average is now coming in around $76.50, which may provide some support, while topside you would have to look at yesterday’s highs for initial resistance. For most traders though, the coming sessions will be dominated by news on the US-Iran conflict and flow-driven moves that will continue to test liquidity.
Quiet Calendar but Busy Markets Ahead
Looking ahead, traders are preparing for another potentially volatile session with market focus remaining firmly on geopolitical developments in the Middle East. With very little of note on the macroeconomic calendar, updates on the conflict are likely to remain the primary driver of market sentiment in the near term. The Asian session was set to kick off on the front foot after a good late rally on Wall Street yesterday; however, further comments from President Trump, that the war would end soon—but not this week—early in the session have put investors in a more cautious mood. Expect a similar very cautious state to continue as we progress through the trading sessions today, with very little of note on the calendar to move markets. Newswires and necessary transactions will be the prime source of direction for traders.
The post General Market Analysis – 10/03/26 first appeared on IC Markets | Official Blog.