Yesterday, equity indices finished with gains. The S&P 500 rose by 0.26%, and the Nasdaq 100 strengthened by 0.42%. The Dow Jones Industrial Average added 0.09%.

Markets showed characteristic resilience. Intraday weakness was quickly bought, and the MSCI All Country World index returned to record highs, adding 0.1% after an early-session drop of 0.2%. Asian bourses followed the same pattern: after an initial 1% decline, they recovered by 0.3%. South Korea's KOSPI recouped all losses, and Tencent jumped 8.8%. The S&P 500 closed higher for the eighth consecutive day, marking the longest winning streak since May 2025.

The main engines remain the same: semiconductors and AI. The chip sector is the best performer in the S&P 500 by a wide margin. Geopolitics has not gone away. The market has simply learned to absorb it.

Brent pulled back to around $94 after Monday's rally. Conflicting accounts of a phone call between Trump and Netanyahu on the situation in Lebanon fuelled price swings. Iran denied reports that a deal was imminent and said it would act through its proxies. Trump has not yet signed off on a 60-day ceasefire agreement. While the situation is not critical, after such an extended rally, the market is highly sensitive to any headline that could re-ignite the chain "oil - inflation - yields."

Gold climbed by roughly 1% to $4,523/oz. The metal is recovering from recent losses amid ongoing uncertainty. 10-year JGB yields fell after a successful auction. Steady demand shows that investors are still attracted to high yields even amid Middle East turbulence. The yen is trading near 159.70 per dollar. Finance Minister Katayama indicated that authorities are ready to intervene if needed. The main event this week is Friday's US jobs report for May. The market is watching closely: the data will show how the economy is coping with inflationary pressure and how new Fed Chair Kevin Warsh might prioritize the central bank's dual mandate.

Technically, the S&P 500 analysis suggests that the immediate task for buyers is to overcome the resistance level of $7,607. Doing so would confirm further upside and open the path to $7,639. Maintaining control above $7,659 would further cement buyers' positions. On the downside, buyers must defend the $7,574 area. A break below that level would likely push the index back to $7,547 and open the way to $7,518.