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The U.S. stock market rebounded from early war-driven declines as investors balanced geopolitical risks with strong economic data. The S&P 500 and NASDAQ erased losses amid reports of disruptions in the Strait of Hormuz, a critical oil chokepoint, which pushed crude prices higher. Former President Trump's comments about ongoing U.S. combat operations in Iran added to regional tensions. Meanwhile, gold faced technical resistance despite a geopolitical-driven spike, while manufacturing PMI data showed mixed signals with U.S. and global indices slightly above contraction levels. The Swiss franc fell after the Swiss National Bank (SNB) issued warnings, and the dollar gained traction amid heightened U.S.-Iran conflict. The market's resilience highlights investors' willingness to buy dips during geopolitical uncertainty, though oil and gold remain key volatility drivers. Central banks' responses to the conflict and economic data will shape near-term trends. For traders, the Strait of Hormuz's stability and Iran's nuclear policy developments are critical risks to monitor. The interplay between energy prices, equity rotations, and central bank policies will likely dominate market sentiment in the coming weeks. For Gulf investors, the Hormuz situation directly impacts oil-linked assets and regional stability. The Swiss franc's decline offers potential opportunities for hedging or diversification. The mixed manufacturing PMI data suggests cautious optimism about global economic resilience, but prolonged geopolitical tensions could disrupt supply chains and energy markets. Investors should watch for central bank interventions and updates on military operations in the Middle East.
