Markets are meandering after initial, larger moves Sunday evening. Crude oil is up just a bit along with gold, while equities are slightly lower. The dollar and Treasuries are up.
The US entered the fray in the Middle East over the weekend, dropping 14 30,000-pound bunker buster bombs on three separate Iranian nuclear sites late Saturday. Tomahawk missiles were also launched from US submarines. It will take a while to determine the full extent of the damage and the degree to which Iran’s nuclear ambitions have been set back by US and Israeli airstrikes. But President Trump lauded the raid as successful.
Crude Oil, S&P 500, Gold Futures (1-Day % Change)
After markets opened Sunday evening, we saw the moves you might expect – a pop in oil and gold prices, and a decline in equity futures. But they weren’t large, and markets have largely retraced those initial moves since. Further moves will depend on how, when, and where Iran responds to the US joining the attack. Options range from attacking US military bases in the region to attempting to disrupt the flow of oil through the Strait of Hormuz.
Could the era of big banking mergers be back? Bank of New York Mellon Corp. (BK) recently approached Northern Trust Corp. (NTRS) about a tie up, according to the Wall Street Journal – a deal that would unite two behemoths in the trust, custodian, and wealth management industry. BNY’s market cap is around $65 billion, while NT’s is almost $22 billion. The Trump Administration is thought to be more open about banking deals than the Biden Administration before it.
Finally, Tesla Inc. (TSLA) is officially giving Alphabet Inc.’s (GOOGL) Waymo driverless taxi service a run for its money. Sort of. A limited fleet of 10-20 Tesla robotaxis took to the streets in a restricted part of Austin, Texas, allowing selected people to hail them and take rides. But it’ll take a long time for TSLA to match Waymo, which offers commercial service in multiple cities around the US.
