Expectations of Easing US-Iran Tensions Drive Global Risk Asset Rebound: Brent Crude Falls Below $90, US Stock Futures Edge Up

BlockBeats News, August 25th. The market saw a rise in expectations of easing tensions between the US and Iran, leading to a broad rebound in global risk assets. According to The New York Times, the US is preparing to send back diplomats to the Middle East embassies that were previously evacuated. This development has led the market to believe that Washington may not expect an all-out conflict with Iran in the short term. Brent crude oil briefly fell below $90 per barrel, with an intraday drop of over 3%; WTI crude oil also dropped by around 3%.

US stock futures climbed, with S&P 500 futures up 0.4% and Nasdaq 100 futures up 0.9%. The semiconductor sector led the gains, with Nvidia up by about 0.9% in premarket trading, poised to end a seven-day consecutive decline. Micron, Seagate, and other AI-related stocks also showed significant strength. The yield on the US 10-year Treasury bond fell by around 3 basis points to 4.66%, providing support for risk assets as bond yields declined.

In the crypto market, BTC briefly surpassed $80,000, its first time since mid-May, before narrowing its gains. The market believes that the devaluation of the US dollar has reignited trading, and the recent intervention in the bond market by US Treasury Secretary Yellen has driven some funds to seek dollar alternative assets, providing a boost for BTC's rise.

Meanwhile, billionaire investor Stanley Druckenmiller criticized Yellen's intervention in the bond market in an article in The Wall Street Journal, stating, "The government's attempt to detach prices from fundamentals will ultimately fail."

The market is currently focused on Nvidia's earnings report, US PCE inflation data, and Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole meeting this Friday. These events may further determine the direction of the September market and interest rate expectations.