Global financial markets were jolted on Thursday, with oil prices taking a sharp dive and Wall Street showing a mixed performance. Investors closely monitored developments surrounding a potential U.S.-Iran nuclear agreement, fresh economic data from the U.S., and key remarks from Federal Reserve Chair Jerome Powell.
Crude oil futures tumbled over 2% on Thursday following renewed optimism about a possible U.S.-Iran nuclear deal. The agreement, which is reportedly nearing completion, could pave the way for increased Iranian oil exports—raising concerns about a surge in global supply.
Brent crude, the international benchmark, dropped significantly after U.S. President Donald Trump—during a diplomatic tour of the Middle East—announced that Washington was “getting close” to finalizing terms with Tehran. He added that Iran had “sort of” agreed to the deal, fueling speculation in energy markets.
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U.S. stock indexes posted mixed results by the end of Thursday’s session, reflecting investor uncertainty. The Dow Jones Industrial Average gained 271.69 points, or 0.65%, closing at 42,322.75. The S&P 500 edged up 24.35 points (0.41%) to 5,916.93, while the Nasdaq Composite slipped by 34.49 points (0.18%) to finish at 19,112.32.
Market volatility was driven by both geopolitical developments and domestic economic data, with investors weighing the broader implications for monetary policy and inflation.
In a noteworthy development, Federal Reserve Chair Jerome Powell suggested that policymakers may need to reassess their approach to inflation and employment targets. Speaking at the opening of a two-day conference, Powell emphasized the evolving economic landscape and the need for flexibility in the Fed’s strategy.
His remarks added a layer of uncertainty to the market, with investors trying to gauge the timing and nature of potential interest rate decisions.
Fresh data released Thursday showed a surprise decline in U.S. producer prices for April, indicating a potential easing of inflationary pressures. At the same time, retail sales came in mixed, underscoring lingering concerns about consumer strength and spending patterns.
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These indicators could influence future monetary policy decisions, particularly as the Fed continues to balance its dual mandate of price stability and full employment.
In Europe, major equity indexes reversed earlier losses to close higher, buoyed by strong corporate earnings. Investors shrugged off initial concerns linked to global oil supply and U.S. economic data, choosing instead to focus on company performance and resilience across key sectors.
Gold prices surged over 1% on Thursday as traders sought safe-haven assets amid geopolitical tensions and economic headwinds. The precious metal benefited from both falling bond yields and concerns over a potential shift in U.S. monetary policy.
Globally, the MSCI All Country World Index rose 0.3%, reflecting cautious optimism in developed markets. However, emerging market stocks experienced a slight decline, weighed down by uncertainty around U.S. policy moves and geopolitical unrest.
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