Market Dynamics: Shifts in Global Oil, Gold, and Stock Prices Amid U.S.-Iran Tensions

Amid shifting geopolitical tensions between the U.S. and Iran, oil prices and gold saw notable declines, whereas tech stocks received a boost from TSMC's impressive profits. These market dynamics reflect a rotation in Wall Street and global currency fluctuations, particularly in relation to the U.S. dollar and Japanese yen.

Oil prices and gold declined following U.S. President Donald Trump's statements suggesting a de-escalation in potential military action against Iran. This easing of immediate risk appetite led to reduced demand for safe-haven assets, causing market disturbances.

Tech stocks, however, experienced an upswing thanks to stellar profits from Taiwan's TSMC, the world leader in AI chip production. This uplift contributed to positive movements in European markets, notably the Dutch chip equipment maker ASML, boosting the STOXX 600 index.

In currency markets, the yen regained ground following Japanese authorities' warnings, which stabilized its position against the U.S. dollar. Meanwhile, Wall Street observed a rotation favoring smaller-cap stocks, with the small-cap Russell 2000 outperforming other indices.

(With inputs from agencies.)