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Emirati Shares Rebound Amid US-Iran De-escalation Hopes

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Stocks in the United Arab Emirates rallied on Tuesday, buoyed by prospects of a de-escalation between the US and Iran.

At the close of trading, the FTSE ADX General Index gained 0.347%, while the DFM General Index was 0.278% in the green.

The US Central Command completed its 10th consecutive night of strikes on Iran, with US President Donald Trump stating in a social media post that the Middle Eastern country will pay "many times over" for the death of American soldiers. However, investors breathed a sigh of relief on news of a 10-day ceasefire proposed by mediators to resume negotiations between the two countries.

Oil prices rose and were trading at nearly $90.567 per barrel at 3:40 pm UAE time after Yemen's Houthis threatened a naval blockade against Saudi Arabia, posing further risks of disruption in energy supplies.

"With the Gulf's primary maritime outlet largely closed, the market is increasingly dependent on Saudi Arabia's East-West pipeline and Red Sea terminals to maintain export flows. Any disruption at Bab el-Mandeb would therefore threaten not only Saudi shipments but one of the few remaining routes capable of compensating for the severe reduction in Hormuz traffic," Rystad Energy senior vice president and head of geopolitical analysis Jorge Leon commented. "If a ceasefire does not materialize and Hormuz remains largely closed while the Houthi threat to Red Sea shipping intensifies, the risk of a significant rebound in oil prices would be substantial."

Turning to the region's corporate side, Aldar Properties (ADX:ALDAR) launched its new 592-apartment residential community named The Canopies on Yas Island in Abu Dhabi. Shares of the real estate developer closed the session 0.53% higher.

Meanwhile in Dubai, Emirates Central Cooling Systems (DFM:EMPOWER), d/b/a Empower, awarded a contract for the development of a new district cooling plant in the Al Sufouh 2 area in Dubai. The Dubai-listed cooling services company's shares were 0.62% in the green at the time of closing.

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Asia Markets

Update: US Equity Indexes Fall, Crude Oil Rises After Trump Warns More Strikes on Iran Amid Risk to Saudi Arabian Supplies

(Updates with index/price moves, macroeconomic data, and company/geopolitical news from the first paragraph.)US equity indexes fell while crude oil prices rose as President Donald Trump signaled more attacks on Iran amid threats from the Tehran-backed Houthi group to Saudi Arabian crude oil supplies.The Nasdaq slipped less than 0.1% to 25,508.07 on Monday, giving up intraday gains of more than 1%. The S&P 500 fell 0.2% to 7,443.28 after trading in positive territory earlier in the session. The Dow Jones Industrial Average slid 0.6% to 51,839.26, ending the day close to the session low.Health care, materials, and industrials led decliners. Communication services, energy, and technology were the only gainers.President Donald Trump warned Iran "will pay" for three US troop deaths over the past few days, CNN reported. The US is increasing the number of fighter jets in the Middle East as Trump considers how to proceed in the fight against Iran, CNN cited an official.The US military strategy seems to be to attack Iran's offensive and defensive assets until it surrenders its claims on the Strait of Hormuz, according to a Macquarie note. "As for the US's long-term strategic plans, it is clear that they are about diminishing reliance on the Strait over time, by supporting the build-out of alternative oil transportation modalities."Meanwhile, the Tehran-backed Houthi group in Yemen said Monday they were imposing a naval blockade on Saudi Arabia, Reuters reported. The full closure of the Bab el-Mandeb strait would reduce global oil supply by 7% as it would leave most of Saudi oil exports unable to leave the region, the news report said. The disruption would add to the reduction in oil flows from the war, which has already cut shipments by 10% of global supply, it added.The front-month US West Texas Intermediate rose 0.6% to $83.01 a barrel, while global benchmark North Sea Brent climbed 0.9% to $88.88 a barrel, after both crude types traded lower earlier in the session.Most US Treasury yields rose, with the 10-year advancing 5.3 basis points to 4.59%. The two-year jumped 3.9 basis points to 4.21%.In precious metal markets, gold futures slipped 0.2% to $4,013.5, while silver futures climbed 1.3% to $57.06.In economic news, the Conference Board's measure of leading indicators declined by 0.2% in June, larger than the 0.1% decrease expected in a Bloomberg-compiled survey, following a 0.1% increase in May."Consumer spending is weakening, but strong business investment related to AI is expected to support economic activity while inflation continues to improve," said Justyna Zabinska-La Monica, Senior Manager of Business Cycle Indicators. "The Conference Board raised its forecast from 1.8% to 1.9% year-over-year GDP growth for 2026."In company news, Alphabet's (GOOG, GOOGL) Google is working on a new server chip that will allow it to serve its AI models to users more efficiently, The Information reported Monday, citing two people with direct knowledge of the matter. Shares of Google's parent rose 1.5%.

Dow JonesNasdaq CompositeS&P 500$GOOG$GOOGL
Asia Markets

Update: Communication Services, Technology Help Lift Nasdaq and S&P 500; Crude Oil Mixed as Iran Ally Threatens Saudi Supply

(Updates with index/price moves, macroeconomic data and company/geopolitical news from the first paragraph.)US equity indexes traded mixed, with communication services and technology sectors helping lift the Nasdaq Composite and the S&P 500.The Nasdaq rose 0.5% to 25,639.2, with the S&P 500 up 0.2% to 7,468.9 after midday Monday. The price-weighted Dow Jones Industrial Average, which is home to old economy sectors, fell 0.4% to 51,954.8.Consumer staples, utilities, and materials led decliners. Energy was among the trio of gainers as investors weighed geopolitical developments.US Secretary of State Marco Rubio said Sunday night the US "remains open" to talks despite the weekend's violence, and an Iranian official said their side was similarly open to discussions, CNN reported.Iranian Interior Minister Eskandar Momeni is heading a high-level delegation to neighboring Pakistan at the invitation of his Pakistani counterpart, news reports said Monday. The trip comes after Iran's Foreign Ministry announced mediators continue to exchange proposals to get peace talks back on track after nearly two weeks of bombardment.The front-month US West Texas Intermediate slipped 0.2% to $82.35 a barrel, while global benchmark North Sea Brent edged up 0.2% to $88.29 a barrel.In precious metal markets, gold futures slipped 0.2% to $4,013.5, while silver futures climbed 1.3% to $57.06.Meanwhile, Yemen's Iran-aligned Houthis said on Monday they were imposing a naval blockade on Saudi Arabia, a move that widens the threat to global energy supplies and trade beyond the Gulf, Reuters reported.Most US Treasury yields rose, with the 10-year soaring 6.3 basis points to 4.6%. The two-year surged 5.5 basis points to 4.23%.In economic news, the Conference Board's measure of leading indicators declined by 0.2% in June, larger than the 0.1% decrease expected in a Bloomberg-compiled survey, following a 0.1% increase in May."Consumer spending is weakening, but strong business investment related to AI is expected to support economic activity while inflation continues to improve," said Justyna Zabinska-La Monica, Senior Manager of Business Cycle Indicators. "The Conference Board raised its forecast from 1.8% to 1.9% year-over-year GDP growth for 2026."In company news, Alphabet's (GOOG, GOOGL) Google is working on a new server chip that will allow it to serve its AI models to users more efficiently, The Information reported Monday, citing two people with direct knowledge of the matter. Shares of Google's parent rose 2.3% intraday.Barclays upgraded Lumentum (LITE) to overweight from equalweight, with a price target of $1,000. Shares of Lumentum traded 7.2% higher intraday, the top gainer on the S&P 500 and the Nasdaq.

Dow JonesNasdaq CompositeS&P 500$GOOG$GOOGL$LITE
Asia Markets

Exchange-Traded Funds, US Equities Mixed After Midday

Broad Market IndicatorsBroad-market exchange-traded fund IWM fell and IVV rose. Actively traded Invesco QQQ Trust (QQQ) added 0.7%.US equity indexes traded mixed, with communication services and technology sectors helping lift the Nasdaq Composite and the S&P 500.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each added 1%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) gained 0.7%; iShares US Technology ETF (IYW) rose 0.8%, and iShares Expanded Tech Sector ETF (IGM) was up 1.2%.The State Street SPDR S&P Semiconductor (XSD) rose 1.4%, and iShares Semiconductor (SOXX) gained 1.7%.FinancialThe State Street Financial Select Sector SPDR (XLF) fell 0.3%. Direxion Daily Financial Bull 3X Shares (FAS) declined 0.5%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), advanced 0.8%.CommoditiesCrude oil rose 0.3%, and the United States Oil Fund (USO) added 0.5%. Natural gas dropped 2.2%, and the United States Natural Gas Fund (UNG) eased 2.1%.Gold on Comex fell 0.2%, and the State Street SPDR Gold Shares (GLD) slipped 0.1%. Silver added 1.3%, and iShares Silver Trust (SLV) gained 1.4%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) fell 0.5%. The Vanguard Consumer Staples ETF (VDC) dropped 0.6%, and iShares Dow Jones US Consumer Goods (IYK) lost 0.5%.The State Street Consumer Discretionary Select Sector SPDR (XLY) fell 0.5%. VanEck Retail ETF (RTH) declined 0.3%, and the State Street SPDR S&P Retail (XRT) was down 0.2%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) and iShares US Healthcare (IYH) each fell 0.5%, and Vanguard Health Care ETF (VHT) declined 0.5%. IShares Biotechnology ETF (IBB) shed 0.7%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) eased 0.5%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were lower as well.CryptocurrencyIn midday activity, bitcoin (BTC-USD) rose 1.5%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) added 2%, ProShares Ether ETF (EETH) was up 2.9%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 1.4% higher.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH