US Equities Mixed Midday; Nasdaq Up 1.08%, Dow Down 0.12%; Oil Falls Amid Geopolitical Tensions

Lead US equities are mixed at midday, with Nasdaq futures up 1.08% and S&P 500 futures up 0.47%. Dow futures are down 0.12%. WTI crude is down 1.59% and Brent crude is down 1.45%, while the US 10-year yield is down 0.96%. Geopolitical tensions in the Middle East continue to influence market sentiment. Session narrative US equity markets are showing a mixed performance at midday. Nasdaq futures are leading gains, up 1.08%, while S&P 500 futures are also higher by 0.47%. In contrast, Dow futures are down 0.12%. The US 10-year yield has declined by 0.96%. In commodities, crude oil is under pressure, with WTI crude falling 1.59% and Brent crude down 1.45%, influenced by ongoing geopolitical developments in the Middle East and concerns about demand. Gold and Silver are also down, 1.03% and 1.19% respectively. The US Dollar Index is slightly lower by 0.05%. News flow indicates continued geopolitical focus on the Middle East, with reports of drone attacks and military movements. Earnings reports from companies like Cisco and Tapestry are also impacting individual stock performance. The US is sending a fresh aircraft carrier to the Middle East, and the US Defense Secretary states the US can hold a blockade against Iran. Lumber prices have slipped below $570 due to tariff uncertainty. The EIA reported a natural gas change of 36B Bcf, higher than the 31B Bcf forecast. Cross-asset check Equity futures are mixed, with Nasdaq futures up 1.08% and S&P 500 futures up 0.47%, while Dow futures are down 0.12%. The US 10-year yield is down 0.96% to 4.64%. In the FX market, the US Dollar Index is down 0.05%. EUR/USD is up 0.05%, while USD/JPY is up 0.04%. GBP/USD is down 0.06%. Commodities are mostly lower, with WTI crude down 1.59% to $81.95 and Brent crude down 1.45% to $87.69. Gold is down 1.03% to $4421.3, and Silver is down 1.19% to $64.92. Natural gas is down 1.21% to $2.77. The VIX is up 0.96% to 14.69. Themes & continuing stories Geopolitical tensions in the Middle East remain a dominant theme, with reports of drone attacks on an Aramco refinery in Jizan and the US military's efforts to establish a multinational attack drone task force. The US is also deploying an aircraft carrier to the region, and the Defense Secretary has commented on a potential blockade against Iran. These developments are contributing to volatility in crude oil markets. Earnings reports are also driving individual stock movements, with Cisco shares falling despite strong results and guidance, while Tapestry shares are also lower. Lumber prices are being affected by ongoing tariff uncertainty. The broader market is weighing these factors, leading to a mixed performance across equity indices. What’s ahead Market participants will continue to monitor geopolitical developments in the Middle East for potential impacts on oil prices and broader risk sentiment. Further earnings reports and economic data releases will also be in focus. The upcoming US 4-week Treasury bill auction is scheduled. Investors will also be watching for any further commentary from central bank officials, particularly regarding inflation and monetary policy.