The stalemate between the US and Iran has dragged down market sentiment, causing global stock and bond prices to fall. Continued blockage of the Strait of Hormuz has pushed oil prices higher.
On April 23, US stock indices declined, European stocks opened lower collectively, and Asian indices showed more declines than gains, with the Seoul Composite Index in South Korea bucking the trend to close up 0.9%. US Treasury prices faced pressure, while the US dollar remained largely flat. Brent crude and WTI crude both rose over 1%, while spot gold fell 0.6% to around $4,710 per ounce.
Geopolitical risks have seen no substantive improvement, and the sentiment that previously boosted US stocks is gradually fading. As reported by Wallstreetcn, after US President Trump announced an extension of the ceasefire on Tuesday local time, the outlook for a new round of negotiations between the US and Iran remains unclear. During the extended ceasefire, both sides blocked the Strait of Hormuz in hopes of gaining leverage in negotiations. Tehran has stated it has no plans to participate in talks in the near future.
The extension of the ceasefire itself, combined with strong first-quarter earnings, still drove the S&amp;P 500 and Nasdaq to record closing highs overnight, with chip indices logging their sixteenth consecutive day of gains. However, accumulated gains in the stock market earlier and the proximity of central bank meetings in multiple countries triggered profit-taking sentiment, causing US stock index futures to decline.
Bloomberg analyst Mark Cranfield stated: &#34;Given that the MSCI World Index has risen more than 8% this month and a series of important central bank meetings are scheduled for next week, investors have a strong motivation to take profits. Additionally, traders remain cautious about the sudden super-demand cycle emerging in the artificial intelligence sector. Typically, when a theme becomes widely recognized, it is precisely the right time to take profits.&#34;
Key market movements were as follows:
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Dow Jones futures fell 0.5%, S&amp;P 500 index futures fell 0.4%, and Nasdaq 100 index futures fell 0.3%.
The Euro Stoxx 50 index opened down 0.5%, Germany's DAX index fell 0.7%, the UK's FTSE 100 index fell 0.6%, and France's CAC 40 index fell 0.1%.
The Nikkei 225 index closed down 0.7% at 59,140.23 points. The Tokyo Stock Exchange Prime Index closed down 0.8% at 3,716.38 points. The Seoul Composite Index closed up 0.9% at 6,475.81 points.
The yield on the 10-year US Treasury note rose 2 basis points to 4.32%.
The Bloomberg Dollar Spot Index changed little.
West Texas Intermediate (WTI) crude oil prices rose 1.4% to $94.26 per barrel.
Spot gold fell 0.6% to $4,713.42 per ounce.
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<h2>Oil Prices Rise, US Stock Futures Under Pressure</h2>
Despite a lack of positive developments on the geopolitical front and downward pressure on US stock futures, corporate earnings performance continues to support the market. Tesla's first-quarter earnings exceeded expectations, Texas Instruments provided optimistic guidance for the current quarter, and Boeing shares surged significantly due to robust delivery volumes.
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Oil prices rose, with Brent crude advancing nearly 1.5% to $103.4 per barrel, and WTI rising over 1.5%. Carol Kong, a currency strategist at Commonwealth Bank of Australia based in Sydney, stated: &#34;The market has remained optimistic throughout this conflict, hoping for a quick resolution that would restore normal energy flows through the strait. However, I still believe the market will soon realize that the path to a long-term agreement remains long, and energy prices may rise further before falling.&#34;
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<h2>Chip Sector Leads Gains; Korean and Japanese Markets Hit New Records</h2>
As reported by Wallstreetcn, SK Hynix reported first-quarter operating profits surging more than fivefold year-on-year, far exceeding analyst expectations. Boosted by this news, SK Hynix shares rose 0.2% for the day, with intraday gains exceeding 3% at one point. Samsung Electronics shares also rose over 4% at times.
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SK Hynix's impressive results injected confidence into the Asia-Pacific tech sector. The Seoul Composite Index closed up 0.9% at 6,475.81 points, with intraday gains expanding to 2.1% and setting a new historical high. This trend resonated with the strength seen in the US chip sector. According to Wallstreetcn, US chip stocks have risen for 16 consecutive trading days, marking the longest streak on record, while the Philadelphia Semiconductor Index simultaneously hit a new all-time high.
Data from Bloomberg Industry Research shows that semiconductor industry revenue is projected to grow by approximately 57% in 2026, double the growth rate of the broader technology sector and significantly higher than the 9.3% expected growth for the S&amp;P 500.
Gary Tan, Fund Manager at Allspring Global Investments, stated:
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The recent resilience of Asia-Pacific tech stocks, despite ongoing supply chain disruptions, indicates that investor tolerance for short-term geopolitical risks is increasing. Whether these stocks can achieve sustained revaluation relative to US stocks may depend on capital expenditure signals in the upcoming earnings reports from major tech giants next week.
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The Nikkei 225 Index had previously broken through the 60,000-point mark for the first time in history but closed the day down 0.7% at 59,140.23 points; the TSE Prime Index closed down 0.8% at 3,716.38 points.
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Geopolitical risks offset the boost from strong earnings reports. Combined with prior gains and approaching central bank meetings, profit-taking sentiment intensified, weighing on US and European markets. SK Hynix's results lifted Asia-Pacific tech stocks, pushing Japanese and Korean markets to intraday highs; the Nikkei closed down 0.7%, while the KOSPI rose 0.9%. US Treasuries declined, oil surged over 1%, and gold fell 0.6% to $4,710

- Geopolitical tensions between the U.S. and Iran are negatively affecting market sentiment, leading to declines in global equity and bond markets.  
- Despite this, strong earnings from companies like Tesla and Texas Instruments are providing some support, while a significant increase in oil prices is putting pressure on U.S. stock index futures.  
- The semiconductor sector remains strong, with Asian markets, particularly the Seoul Composite Index, experiencing gains supported by impressive results from SK Hynix and an optimistic outlook for the semiconductor industry.

US-Iran Stalemate Drags Down Global Stocks and Bonds; Tech Optimism Fades as Nikkei Closes Lower After Breaking 60,000; Oil Rises Over 1%