Spreadex Market Update
S&P 500 Falls as Iran Conflict Lifts Oil Prices
Summary
The S&P 500 and Dow Jones closed lower on Wednesday as renewed fighting involving the US and Iran weighed on sentiment, while Brent crude remained near $97 per barrel after a sharp rise. The FTSE 100 also slipped, although B&M surged after reporting stronger-than-expected annual profits and Debenhams Group advanced after returning to growth. The US dollar held near a two-month high, while the Japanese yen remained close to the 160-per-dollar level that has drawn intervention concerns. Gold traded near record levels as investors monitored developments in the Middle East.
Equities
The FTSE 100 closed 0.4% lower on Wednesday, while the FTSE 250 fell 0.8%, as UK shares weakened alongside broader global markets. Energy stocks provided some support after oil prices rose around 2%, lifting the sector by 1.6%.
Bridgepoint Group closed 9.8% lower on Wednesday after Switzerland’s Partners Group placed limits on withdrawals from its $8.6 billion private equity fund, prompting selling across listed asset managers. Ninety One fell 4.6% after analysts highlighted lower-than-expected net inflows during the second half of its 2026 financial year.
B&M European Value Retail was one of the strongest performers in London trading, closing 16.1% higher on Wednesday after reporting a smaller-than-expected decline in annual pre-tax profit. Debenhams Group rose 14.4% after the online retailer returned to growth, posting a 0.5% increase in first-quarter gross merchandise value and reporting a substantial improvement in underlying profit.
In the United States, Wall Street retreated from recent record highs on Wednesday. The S&P 500 closed 0.74% lower at 7,553.72, the Dow Jones Industrial Average fell 1.21% to 50,687.07 and the Nasdaq Composite lost 0.89% to finish at 26,853.98.
Technology and financial stocks weighed on the main indices, although semiconductor shares remained resilient. The Philadelphia Semiconductor Index gained 1.4%, reflecting continued investor interest in major chipmakers and artificial intelligence-related businesses.
Meta Platforms stood out among the largest technology companies, closing 4.2% higher on Wednesday. Several semiconductor stocks also posted strong gains, with Marvell Technology, Intel, Qualcomm and Sandisk advancing between 3.7% and 6.7% during the session.
Broadcom was in focus ahead of quarterly results. Its shares finished regular trading higher but fell 4.5% in after-hours trading after the company released its earnings update.
Private equity and alternative asset management groups came under pressure following the developments at Partners Group. KKR, Blackstone, Blue Owl Capital and Ares Management all closed between 3.9% and 4.2% lower on Wednesday.
GameStop gained 6.0% after reporting higher quarterly revenue and announcing a $2 billion share buyback programme, providing fresh support for the retailer’s shares.
Forex & Commodities
The US dollar remained close to a two-month high early on Thursday as investors monitored developments in the Middle East. The dollar index traded at 99.45, near its strongest level since early April.
The euro edged higher to $1.161, while sterling was little changed at $1.343. The Australian dollar held steady at $0.7129 after new trade data showed the country returned to a goods trade surplus in April. The New Zealand dollar moved higher to $0.5875 after recovering from a one-week low.
The Japanese yen remained under close scrutiny, trading at 159.9 per dollar early on Thursday. The currency briefly weakened beyond the 160 level on Wednesday, prompting renewed attention on the possibility of official action by Japanese authorities.
Gold prices moved higher early on Thursday. Spot gold rose to $4,469 per ounce as a softer dollar and lower oil prices improved sentiment towards the precious metal. Silver traded at $73.13 per ounce, platinum reached $1,876 and palladium rose to $1,306.
Oil prices eased on Thursday following signs of progress towards a ceasefire between Israel and Lebanon. That followed strong gains on Wednesday, when Brent crude settled at $97.81 per barrel and US West Texas Intermediate crude closed at $96.02 after renewed hostilities in the Gulf and concerns over energy supplies.
Bitcoin traded lower at $63,980 early on Thursday after falling to its weakest level in four months.
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