US Equities Waver Midday; WTI Crude Surges 3.94%, Silver Up 2.82%

Lead US equities are mixed at midday, with S&P 500 futures down 0.07% and Nasdaq futures down 0.20%. WTI crude has surged 3.94%, while silver is up 2.82%. Geopolitical tensions surrounding Iran and supply chain stress continue to influence markets. Session narrative Equity markets are showing a mixed picture at midday. S&P 500 futures are down 0.07%, Nasdaq futures are down 0.20%, Dow futures are lower by 0.17%, and Russell futures are down 0.56%. The VIX has seen a notable increase of 5.50%, indicating heightened market volatility. In the commodities space, WTI crude has surged 3.94%, marking its third consecutive session of gains, driven by escalating US-Iran conflicts, Gulf tanker attacks, and broader supply concerns in the Middle East. Silver is also performing strongly, up 2.82%, with gold gaining 0.40%. The US Dollar Index has risen 0.16%, and the US 10-year yield is up 0.77%, while long-duration Treasuries are down 0.71%. Geopolitical developments remain a key focus, with reports of the US and former President Trump demanding compensation from Iran. Iran's Supreme Leader has also appointed new military commanders, adding to regional tensions. Global supply chain stress is noted as remaining high, at levels seen during the COVID period. In corporate news, NVIDIA has experienced a drop, while Take-Two Interactive's shares jumped after reporting strong fiscal first-quarter results, despite reiterating its full-year bookings outlook. Cross-asset check Equity futures are broadly lower, with S&P 500 futures down 0.07%, Nasdaq futures down 0.20%, Dow futures down 0.17%, and Russell futures down 0.56%. Volatility, as measured by the VIX, is up 5.50%. In fixed income, the US 10-year yield has risen 0.77%, and long-duration Treasuries are down 0.71%. The US Dollar Index is up 0.16%. Commodities are seeing significant moves, with WTI crude surging 3.94%, Brent crude up 3.84%, natural gas up 4.70%, and silver gaining 2.82%. Gold is also higher by 0.40%. EUR/USD is down 0.10%, while USD/JPY is up 0.78%. Themes & continuing stories Geopolitical tensions, particularly those involving the US and Iran, continue to be a dominant theme, impacting crude oil prices and overall market sentiment. Reports of demands for compensation from Iran and appointments of new military commanders by Iran's Supreme Leader are keeping the situation fluid. Commodity price volatility, especially in oil, is a direct consequence of these tensions and broader supply concerns. Additionally, high global supply chain stress remains a persistent issue, contributing to economic uncertainty. What’s ahead Market participants are looking ahead to the US CPI data, scheduled for release on August 12th. Analysis of past market reactions and deviations to US CPI figures is being tracked as a guide for potential market movements.