This content was published on
July 8, 2026 - 12:55
5 minutes
(Bloomberg) — Stocks fell, bond yields spiked and oil rallied after President Donald Trump thrust geopolitical risks back into focus by declaring the ceasefire between the US and Iran to be over.S&P 500 futures slid 0.8%. Brent crude advanced 5% to around $78 a barrel. Trump called the ceasefire “a waste of time” after the US launched strikes against Iran in response to attacks on ships transiting the Strait of Hormuz. Gold fell and the dollar wavered.Trump’s declaration “marks the most serious rupture yet in an agreement that has been fraying for weeks,” said Violeta Todorova, senior research analyst at Leverage Shares. “Markets had been treating the June memorandum of understanding as a durable de-escalation. That complacency now looks fragile.”European bonds tumbled as traders added to wagers that central banks will have little choice but to raise interest rates this year. The yield on 10-year gilts jumped 10 basis points to 4.95%, the highest level in nearly a month. Treasuries extended Tuesday’s selloff, though the rise in rates was modest.Wednesday’s escalation is prompting a flight from risk after an April ceasefire and a subsequent US-Iran memorandum of understanding gave investors confidence that both sides were keen to avoid a prolonged conflict. Stocks have rallied since late March as a strong earnings season bolstered confidence in the economic potential of artificial intelligence.That trade was in focus earlier Wednesday in South Korea, where the Kospi Index slumped 5.4% to enter a bear market. This year’s best-performing major benchmark has been lashed by volatility amid a rotation in technology stocks, with investors shifting out of semiconductors in search of more attractive valuations. Alibaba Group Holding Ltd. jumped 12% in Hong Kong.“Overlapping negative news flow is pushing markets down now, and with no major earnings coming out in the next few days to change that trend, it seems there will be little respite for markets,” said Michael Field, chief equity strategist at Morningstar.Oil and gas stocks outperformed in US premarket trading. Chipmakers and related stocks took another beating, with names such as Micron Technology Inc. and Sandisk Corp. falling more than 4%. All members of the Magnificent Seven were trading lower, led by losses in Meta Platforms Inc.The release of the Federal Reserve’s June meeting minutes would be the session’s main macro event. It takes on added significance after Chair Kevin Warsh shortened the policy statement and declined to contribute to rate forecasts. Money markets are fully pricing an October Fed hike.The minutes “might bring back some of the hawkish spirits lost since the jobs report, as they’ll reflect the hawkish dot plot released at the time,” wrote Bloomberg Economics’ Andrew Sacher. “We expect the account to emphasize concerns about above-target inflation and officials’ desire to retain some room to tighten.”What Bloomberg Strategists Say:“It takes a much larger move in oil to overwhelm other drivers of equity performance. The escalation in US-Iran tensions represents a downside risk, but without a much larger increase in commodity prices it is unlikely to have a material impact on equity markets.”— Skylar Montgomery Koning, macro strategist. For the full analysis, click here.Corporate News:UniCredit SpA moved closer to control of Commerzbank AG after investors tendered enough shares at the end of the Italian lender’s takeover offer to raise the stake it can potentially oversee to 47.6%. Singaporean state-owned investor Temasek Holdings Pte is ramping up its exposure to artificial intelligence and the Americas, a shift which helped push its net portfolio value to S$518 billion ($401 billion) in the last financial year. Some of the main moves in markets:StocksS&P 500 futures fell 0.8% as of 6:51 a.m. New York time Nasdaq 100 futures fell 1.2% Futures on the Dow Jones Industrial Average fell 1.1% The Stoxx Europe 600 fell 1.7% The MSCI World Index fell 0.4% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1409 The British pound was little changed at $1.3349 The Japanese yen fell 0.2% to 162.48 per dollar CryptocurrenciesBitcoin fell 2.4% to $62,108.05 Ether fell 2.5% to $1,738.16 BondsThe yield on 10-year Treasuries advanced two basis points to 4.57% Germany’s 10-year yield advanced eight basis points to 3.07% Britain’s 10-year yield advanced 10 basis points to 4.95% CommoditiesWest Texas Intermediate crude rose 5.1% to $74.05 a barrel Spot gold fell 1.3% to $4,053.39 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from James Hirai.©2026 Bloomberg L.P.
