Markets Rally as Iran’s Retaliation Deemed ’Weak’; Rate Cut Odds Rise
Equities climbed as geopolitical tensions showed signs of de-escalation. The S&P 500 and Nasdaq 100 advanced following Iran's carefully calibrated missile strike on a U.S. base in Qatar—an attack that caused no casualties and left oil infrastructure untouched. Market participants interpreted the MOVE as theatrical rather than tactical, with Qatar intercepting all missiles after receiving advance warning from Tehran.
Crude prices retreated from recent highs but remain elevated since mid-June hostilities began. The muted response fueled speculation about potential diplomatic overtures, with former President TRUMP dismissing the action as "a very weak response." Meanwhile, traders increased bets on Federal Reserve rate cuts in July, reflecting growing risk appetite.
