S&P 500: Rebound in futures after Iran-driven selloff – Deutsche Bank

FXStreet Insights Team FXStreet

Deutsche Bank analysts report that S&P 500 futures are rebounding after the index suffered its worst day since late March, pressured by Iran-related geopolitical risks and a more hawkish Federal Reserve (Fed) outlook. Despite strong US data and some upbeat earnings, equities fell broadly, with Energy the only major sector to advance on higher Oil prices.

Futures bounce after broad decline

"Trump’s ceasefire extension has led to some recovery in markets overnight after bonds and equities lost ground on both sides of the Atlantic yesterday."

"S&P futures (+0.51%) are seeing a sizeable rebound, on course to reverse most of the -0.63% S&P 500 decline yesterday, which marked the first back-to-back decline for the index in three weeks."

"Despite the stronger data, US equities struggled yesterday, as Iran fears and the prospect of a more hawkish Fed served to dampen sentiment."

"So the S&P 500 gave up its initial gains at the open to close -0.63% lower."

"This marked the S&P 500’s worst day since March 27, with a broad-based fall that saw two-thirds of the index lower on the day."

"Energy (+1.31%) was the only major sector group to advance. The decline also came despite some positive earnings, including from UnitedHealth Group (+6.96%) as they raised their outlook."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD extends decline to fresh monthly lows below 0.7100

AUD/USD trades south of 0.7100 early in the Asian session on Thursday, as the US Dollar soared following the Federal Reserve's monetary policy announcement. The Fed delivered a 25 bps rate hike as expected, while policymakers expressed concerns about inflation leading to bets of additional hikes before year-end.

USD/JPY flirts with 156.00 after Fed's hawkish hike

USD/JPY trades at fresh weekly highs around 156.00 early on Thursday, as the US Dollar soared following the Federal Reserve's monetary policy announcement. The US central bank hiked the benchmark rate by 25 bps as expected, while Chair Kevin Warsh delivered quite hawkish comments in the press conference that followed the decision.

Gold dips towards $4,250 in the Fed's aftermath

Gold erased intraday gains and turned negative following the Federal Reserve's decision to hike rates by 25 bps as expected. The XAU/USD pair briefly surpassed the $4,360 level, now accelerating its slide towards the $4,250 price zone. Hawkish words from Chair Kevin Warsh fueled bets for additional hikes before year-end.

Fed raises 2026 interest rate forecast to 4.1%, lifts PCE inflation projections

The Federal Reserve's (Fed) latest dot plot projections, released by the Federal Open Market Committee (FOMC) on Wednesday, show policymakers now expect interest rates to stand at 4.1% by the end of 2026, up from 3.8% in June.

Fed recap: One hike down, more to come? The Fed’s new rate path says yes

The Federal Reserve (Fed) raised its Fed Fund Target Range (FFTR) range by 25 basis points to 3.75%-4.00% in a unanimous decision, saying the move would support a timelier return to its 2% inflation goal.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.