Markets are taking a more measured tone to start the day as President Trump meets with China’s Premier Xi while traveling abroad.
At the same time, the Iran-US conflict appears to be temporarily on hold, helping ease some geopolitical anxiety
Crude oil is trading about $0.70 lower on the day, fluctuating above and below the $100 level as traders weigh the pause in tensions against ongoing supply concerns. US equity futures are modestly higher in premarket trading after both the S&P 500 and NASDAQ closed at fresh all-time record highs yesterday. Dow futures are up around 40 points, the S&P 500 is higher by 25 points, and the NASDAQ is up 69 points.
Meanwhile, Treasury yields are moving lower, with the 2-year yield down 3.4 basis points to 3.95%, the 10-year yield down 3.6 basis points to 4.444%, and the 30-year yield lower by 3.3 basis points to 5.011%. In UK political news, Health Minister Wes Streeting has resigned, fueling speculation that he could enter a potential leadership battle against Prime Minister Starmer and other contenders. On the economic calendar, US initial jobless claims are expected at 205K versus 200K last week.