Market Rebounds Despite Middle East Tensions and Oil Price Drop

Despite geopolitical tensions in the Middle East and declining oil prices, global equity markets advanced. Wall Street indexes rose, as did global stocks, while energy equities lagged. The U.S. was involved in military actions with Israel, affecting investor sentiment. Meanwhile, interest rate cuts seem likely, amid concerns over labor market risks.

On Monday, global equity markets showed resilience, advancing despite ongoing Middle East tensions and a decline in oil prices. Wall Street's main indexes, including the S&P 500, showed gains, as investors appeared unfazed by the U.S.'s involvement in military activities in Iran, alongside Israeli efforts.

The Dow Jones Industrial Average inched up by 0.17%, reaching 42,279.55, while the S&P 500 and Nasdaq Composite climbed by 0.48% and 0.61% respectively. European shares slightly declined by 0.2%, with Asia-Pacific markets also slipping. Nevertheless, the global market demonstrated a risk-on sentiment, revealing a reduced sensitivity to geopolitical headlines.

Meanwhile, Brent crude and U.S. West Texas Intermediate crude futures experienced declines, yet remained near multi-month highs. Federal Reserve Vice Chair Michelle Bowman hinted at imminent interest rate cuts due to labor market concerns, as the dollar experienced mixed movements against other currencies. Gold prices saw a modest rise amidst these developments.

(With inputs from agencies.)