Markets Stay Calm as Middle East Tensions Rise The latest military escalation in the Middle East has triggered dramatic headlines and social media panic. Some are already talking about global war and economic collapse. But when you step back and look at how markets are reacting the picture looks far more controlled than the noise suggests. Oil prices jumped at first after the strikes but then pulled back from their highs. If traders believed a long term supply shock was coming crude would likely stay near extreme levels or keep pushing higher. Instead the move looks like a short term reaction.
Markets are reacting to rising tensions around the Strait of Hormuz. US indices pulled back after the open while commodities moved higher as shipping companies started rerouting vessels away from the region. Gold silver and copper are pulling back even as energy prices see strength. Bitcoin dipped near 66500 but is still up around 5 percent over the past week. Donald Trump said the time for negotiations with Iran has passed which signals possible escalation. Earlier statements suggested the conflict could be resolved within weeks but that tone now looks harder.
JUST IN Israel’s presidential aircraft Wings of Zion has departed Nevatim Airbase and is moving to a secure location Netanyahu left Israel earlier today
JUST IN: Iran is moving to close the Strait of Hormuz. This route carries over 20% of the world’s oil supply. If traffic stops global energy markets could feel the shock immediately. #iran #Oil
US Core PPI came in at 3.6% versus expectations of 3% Producer level inflation is running hotter than forecast which suggests price pressure is still building in the pipeline. When producers pay more those costs often pass through to consumers later. This raises the risk that the Fed keeps rates higher for longer instead of rushing into cuts.
We just saw one of the first major layoffs clearly tied to AI. Former X owner Jack Dorsey cut 4000 jobs which is around 40 percent of the company as he shifts fully toward AI and agent driven workflows. After the announcement Block stock jumped 23 percent in just 60 minutes adding nearly 6B in market value. He said what many CEOs think but rarely say publicly that AI combined with smaller teams is creating a new way of working and it is accelerating fast. The message is simple and brutal. 100 people with AI can now produce what once required 1000.
We just saw one of the first major layoffs clearly tied to AI. Former X owner Jack Dorsey cut 4000 jobs which is around 40 percent of the company as he shifts fully toward AI and agent driven workflows. After the announcement Block stock jumped 23 percent in just 60 minutes adding nearly 6B in market value. He said what many CEOs think but rarely say publicly that AI combined with smaller teams is creating a new way of working and it is accelerating fast. The message is simple and brutal. 100 people with AI can now produce what once required 1000.
The U.S. Treasury bought back 745M of its own debt pushing total buybacks this week above 2.7B Liquidity management is getting more active as markets watch debt supply closely
The Korean government seized a crypto ledger and accidentally exposed the seed phrase in a photo. Soon after around 51M in $BTC was stolen from the wallet. One leaked seed phrase is enough to lose everything.
$NVDA opens lower even after beating Q4 earnings and issuing strong guidance. Solid numbers were not enough to satisfy a market that had already priced in high expectations.