​​​Macro update
​Wall Street closes mixed as Middle East tensions dominate:
US equities lost momentum as investors balanced escalating conflict between the US, Israel and Iran with hopes the war could end sooner than initially feared.
​Oil swings sharply on supply uncertainty:
Crude prices fell more than 11% after a surge earlier in the week, with markets reacting to rapidly shifting headlines about the Strait of Hormuz and risks to global energy supply.
​Hormuz threat revives inflation worries:
Reports that Iran could mine the Strait of Hormuz heightened fears of prolonged oil shipment disruptions, raising concerns that higher energy costs could push inflation up while growth slows.
​Energy stocks weaken while tech holds firm:
The drop in oil prices dragged energy shares lower, while technology stocks helped support the broader market, buoyed by gains in semiconductor companies.
​Stock-specific moves stand out:
Health insurer Centene dropped after reaffirming its outlook, while chipmakers advanced and Oracle shares rose in after-hours trading following its earnings release.
​Asia edges higher as oil pressure eases:
Regional markets rebounded modestly after reports the International Energy Agency may consider a record release of emergency oil reserves, with investors also awaiting key US inflation data later in the day.
​Dow Jones bounce runs out of steam
​The Dow Jones Industrial Average is trying to reclaim lost ground by rising from this week’s 46,616 low but seems to have temporarily run out of steam at Tuesday’s 48,220 high.
​A rise above Tuesday’s 48,220 high is needed for a bullish reversal to gain traction, though. If this were to happen the November high and late January lows at 48,431 – 48,460 may thwart the advance, though.
​Minor support is to be found around the 10 December low at 47,463. Slightly lower lies the early December trough at 47,264 which may also act as support.
​Short-term outlook:
Neutral with a slight bullish stance while above the 9 March 46,616 low.
​Medium-term outlook:
Neutral while above the 9 March 46,616 low, failure there would likely lead to the 46,000 – 45,452 support zone being eyed.
Dow Jones daily candlestick chart