U.S. Stocks Hit Fresh Highs Ahead of Iran Talks
By Martin Lam
Summary
U.S. President Donald Trump announced a 10-day ceasefire agreement between Lebanon and Israel, which, along with the potential for a second round of U.S.-Iran talks this weekend, has increased optimism regarding the resolution of the Iran conflict. This news has positively influenced market sentiment.
In economic data, initial jobless claims in the U.S. fell more than anticipated, while manufacturing output for March saw an unexpected decline, indicating that rising energy prices may be impacting business confidence.
Market Overview
On Thursday, U.S. equities reached new heights, with the S&P 500 and Nasdaq Composite achieving record closes for the second consecutive session. The Dow Jones Industrial Average increased by 0.2%, the S&P 500 by 0.26%, and the Nasdaq by 0.36%. U.S. Treasury yields rose, and the dollar rebounded against major currencies, recovering some of its recent losses as investors awaited further developments regarding U.S.-Iran relations.
Gold prices remained stable, closing at $4,787.78 per ounce, while oil prices increased amid ongoing geopolitical tensions, particularly due to the U.S. blockade affecting Iranian ports.
Key Events and Data
Today's focus is on the EU Balance of Trade for February, with several significant economic data releases scheduled for the upcoming week, including:
- Monday: China Loan Prime Rate, EU Germany PPI, Canada CPI
- Tuesday: UK Unemployment Rate, EU ZEW Economic Sentiment Index, U.S. Retail Sales
- Wednesday: API Weekly Crude Oil Stock, UK CPI & PPI, EU Consumer Confidence
- Thursday: Various PMI data across Australia, Japan, EU, and the U.S.
- Friday: Japan CPI, UK Retail Sales, EU Germany Ifo Business Climate, Canada Retail Sales, U.S. Michigan Consumer Sentiment
Market Analysis
EUR/USD
Resistance: 1.1835/1.1884 | Support: 1.1723/1.1673
The EUR/USD pair slipped to 1.1782, unable to maintain seven-week highs as the dollar rebounded. The market sentiment remains cautiously optimistic regarding U.S.-Iran diplomacy.
GBP/USD
Resistance: 1.3603/1.3639 | Support: 1.3479/1.3432
GBP/USD eased to 1.3524 despite positive UK growth data, as the dollar's recovery impacted the pair.
USD/JPY
Resistance: 159.75/159.96 | Support: 159.04/158.82
USD/JPY rose to 159.21, with the dollar's modest rebound supporting the pair.
Crude Oil Futures
Resistance: 92.21/94.90 | Support: 87.61/85.42
WTI crude oil traded below $90, reflecting mixed sentiments between hopes for peace and ongoing supply disruptions.
Spot Gold
Resistance: 4886/4981 | Support: 4736/4643
Gold prices held near $4,796, supported by optimism over U.S.-Iran talks.
Dow Jones Futures
Resistance: 49080/49710 | Support: 47799/47159
The Dow added 0.24%, buoyed by diplomatic optimism and steady labor data.
NASDAQ 100
Resistance: 26592/26887 | Support: 25933/25634
The NASDAQ 100 gained 0.36%, continuing its winning streak amid easing geopolitical fears.
Bitcoin
Resistance: 76397/77231 | Support: 73695/72846
Bitcoin remained above $75,000, supported by improved risk sentiment.