Cryptocurrencies are recovering from earlier losses as stocks shunned Iran’s attack on Israel over the weekend and the world braces for a broader market reaction early this week.
Officials said most of the 300 drones and missiles Iran launched toward Israel on Saturday were intercepted, and tensions appeared to have eased on Sunday. President Joe Biden condemned the attack and said the U.S. military helped Israel shoot down nearly all of the incoming drones and missiles.
“While there are no confirmed attacks on our military or facilities today, we remain vigilant against any threat and will not hesitate to take any necessary action,” Biden said. He will convene a meeting with other leaders of the G7 countries.
U.S. stock futures rose after opening Sunday night. Dow Jones Industrial Average futures were up nearly 0.2% (52 points) at around 6:14 p.m. ET, S&P 500 futures were up 0.2% and Nasdaq futures were up 0.1%.
Brent crude oil futures were relatively flat on Sunday evening, while WTI crude oil futures were down nearly 0.2%. Gold futures rose 0.3%. Bitcoin rose more than 3%.
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Asian stocks begin trading later this evening ET.
The Tel Aviv Stock Exchange 125 Index and Tel Aviv Stock Exchange 35 Index each rose 0.3% on Sunday.
Bitcoin,
The largest cryptocurrency recovered from Saturday’s losses.
Ethereum
It was up 5%.
Iranian Foreign Minister Hossein Abdullahian said Sunday that Tehran has no plans to continue attacks against Israel, according to translated social media posts.
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Traders are watching Asian markets open in the U.S. later on Sunday to read how stocks and other assets will react globally. Oil prices were already trending higher on Friday, and US stock markets ended lower.
The attack could put pressure on lawmakers on Capitol Hill to bring foreign aid back to the forefront. “This should increase the chances of the House passing the instrument,” said Byron Curran of Capital Alpha Partners.
It would be a follow-up should Member States conclude that Iran’s drone and missile industry is a common link between Russia’s war in Ukraine and Israel’s security. ”
It could also complicate the Federal Reserve’s efforts to fight inflation and decide when to cut interest rates. “The situation in the Middle East will give the Fed further reason to take a more cautious approach to rate cuts, but it will not prevent them from cutting rates entirely,” Capital Economics said in a note on Sunday. “We expect the first moves to be made in September.”
Email Liz Moyer at liz.moyer@barrons.com.
