Finance

Financial markets saw a significant risk-on rotation after military strikes were canceled and progress toward a peace deal was announced. This geopolitical shift led to a sharp drop in crude oil prices, which fell approximately 4%, while major stock indexes like the S&P 500 and Nasdaq posted substantial gains.

The yield on the 10-year Treasury note dropped roughly 10 basis points to around 4.46% as falling energy costs reduced immediate inflation concerns. Despite earlier reports of high producer price inflation, the de-escalation of conflict has led some traders to scale back expectations for imminent interest rate hikes by the Federal Reserve.

Bitcoin and Ethereum saw price increases of over 3% following reports of a potential regional peace agreement. While institutional demand in the U.S. has shown signs of cooling recently, the broad market recovery helped Bitcoin stabilize above the $63,000 level.