Markets melted down Sunday night, then rebounded strongly Monday afternoon. So far this morning, stocks are waffling, while gold and silver are gaining. Crude oil is retreating further, the dollar is dropping, and Treasuries remain under pressure.
It was a wild start to the trading week yesterday, with a broad-based selloff replaced by a broad-based rally fueled by two catalysts. First, officials from the Group of Seven nations said they would meet to discuss releasing strategic oil reserves. That would partially offset the reduction in oil supply caused by the effective blockade of the Strait of Hormuz. Second, President Trump said the war would be over “very soon” (though he also said the US would “go further” than it already has).
Oil Takes Traders on a Wild Ride
Source: Bloomberg
In the end, investors were left with a relief rally – but also lingering concern that the conflict will continue. WTI futures were recently trading around $89 a barrel. That’s down from Sunday’s peak of $117, but up substantially from $64 a month ago. Volatility is also sharply higher than in the pre-war days. Futures just swung $38 from high to low, the biggest intraday range since the pandemic struck in 2020.
Meanwhile, the push to bring tokenized stocks and ETFs to US traders is gaining momentum. Major exchanges like the Nasdaq and NYSE are seeking SEC approval to issue digital versions of shares that would be traded on blockchains. That would give domestic investors access to tokenized shares, which foreign investors can already trade. It would also likely usher in 24/7 trading of equities.
