S&P 500 futures slip 0.3% as mixed US-Iran headlines and elevated bond yields dampen risk sentiment despite de-escalation.
Markets opened cautiously after mixed signals on US-Iran tensions. Reports of a potential US sanctions waiver initially lifted risk assets before being denied, while President Trump canceled a planned military strike, citing Gulf leaders’ requests for peace talks. Despite the de-escalation, uncertainty persists as futures and bond yields reflect lingering caution.
The S&P 500 pared earlier losses to close higher on Tuesday, but futures are down 0.3% in early Wednesday trading. US 10-year yields hold at 4.60%, with 30-year yields at 5.14%, signaling ongoing concerns over geopolitical risks and monetary policy. The dollar gains modestly, with EUR/USD at 1.1635 and USD/JPY nearing 159.00, amid intervention warnings from Japan’s finance minister.
Oil prices retreated from yesterday’s highs, while AUD/USD fell 0.5% to 0.7130. Traders remain wary as headlines continue to shift sentiment, balancing de-escalation hopes against persistent geopolitical and economic uncertainties.