Dow Jones seen remaining in red, oil eases on reports of Iran sanctions lifted

• The US 30-year Treasury yield climbed above 5.1%, its highest level since 2023, after stronger-than-expected inflation data fueled concerns the Federal Reserve may keep rates higher for longer
• WTI crude oil retreated to just over $105/barrel from overnight highs above $108 after Iranian news agencies reported Washington 'has accepted the lifting of Iran's oil sanctions' with Pakistan acting as intermediary
• Market focus this week centers on NVDA (Nvidia) earnings Wednesday after the bell, described as 'the heartbeat of the entire AI trade' and critical to overall market sentiment, alongside global PMI data and inflation reports from the UK and Canada

Market Summary: US Equities Under Pressure Amid Bond Yield Concerns and Oil Volatility

Market Overview:

US equity futures opened lower Monday, with Dow Jones futures down 262 points (-0.4%), while S&P 500 and Nasdaq futures declined 0.3%. All three major indices closed Friday over 1% lower, with the Nasdaq leading losses at -1.5% as investors reduced exposure to technology and AI-related stocks.

Key Drivers:

Rising bond yields continue pressuring markets following stronger-than-expected US inflation data. The 30-year Treasury yield surged above 5.1%, its highest since 2023, fueling concerns the Federal Reserve may maintain elevated interest rates longer or implement additional hikes.

Oil Market Developments:

WTI crude reached a two-week high above $108/barrel overnight before easing to $105 following reports of potential Iran sanctions relief. Iranian newswire Tasnim reported Washington "has accepted the lifting of Iran's oil sanctions," proposing a temporary waiver through the Office of Foreign Assets Control, with Pakistan mediating negotiations.

European Markets:

European indices showed resilience, with Frankfurt's DAX up 1% and London's FTSE 100 gaining 0.5%, though France's CAC 40 turned negative.

Key Data Ahead:

• Tuesday: Pending home sales
• Wednesday: Mortgage approvals, Fed minutes, NVIDIA earnings (after market close)
• Thursday: Flash PMI data (US, UK, Germany, Eurozone)
• UK and Canada inflation reports

Critical Focus:

NVIDIA's Wednesday earnings release represents the week's most significant event, described as "the heartbeat of the entire AI trade" with implications for semiconductors, Nasdaq, and overall market sentiment. Analysts emphasize global PMI data will provide crucial insights into potential stagflation risks—weak growth combined with persistent inflation.