Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Gold Prices Fall as US-Iran Conflict, Rising Oil Prices Fuel Fed Rate Concerns 
Singapore GDP Grows 5.7% in Q2 2026 as AI-Driven Manufacturing Boosts Economy 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
Dollar Rises as Middle East Conflict Fuels Inflation and Rate Hike Fears 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
U.S. stock index futures moved lower on Tuesday evening as renewed military action involving Iran dampened investor confidence and raised fresh concerns about geopolitical stability. Market participants are also closely watching upcoming U.S. inflation data, which could provide important clues about the Federal Reserve’s next interest rate decision.
By late evening trading, S&P 500 Futures declined 0.2% to 7,373.75, while Nasdaq 100 Futures also dropped 0.2% to 29,058.50. Dow Jones Futures fell 0.3% to 50,759. The pullback reflected growing uncertainty across financial markets as tensions in the Middle East intensified.
Investor optimism surrounding a potential U.S.-Iran peace agreement weakened after the U.S. military confirmed additional strikes against Iran. According to U.S. Central Command, the operations were conducted in self-defense following the reported downing of an Apache attack helicopter. Reports indicated that a second round of strikes was launched later in the evening, further escalating tensions.
The latest developments overshadowed recent hopes for diplomatic progress after Iran and Israel reportedly paused hostilities earlier in the week. Markets are now assessing the possibility of further retaliation and the broader impact on global stability and energy prices.
Wall Street ended Tuesday with mixed results. The S&P 500 slipped 0.3%, while the Nasdaq Composite fell nearly 1% as technology stocks struggled to maintain momentum. The Dow Jones Industrial Average managed a modest gain of 0.2%.
Semiconductor and artificial intelligence-related stocks remained under pressure as investors questioned the sustainability of recent gains in the AI sector. Server manufacturer Super Micro Computer (NASDAQ: SMCI) dropped more than 9% in after-hours trading after announcing plans to raise $7 billion through equity-related offerings to finance hardware investments.
Attention now shifts to the U.S. Consumer Price Index (CPI) report for May. Economists expect both headline inflation and core inflation to remain elevated, largely due to higher energy costs. The inflation report could significantly influence expectations for Federal Reserve policy and shape the direction of U.S. stock markets in the coming weeks.
