Overview
- U.S. forces said they disabled an oil tanker, came under missile and drone fire and struck a communications tower on Qeshm Island after recent clashes with Iranian-linked forces.
- Oil jumped to multi-week highs and was set for a weekly gain as traders priced in greater risk to exports through the Strait of Hormuz.
- Equity markets were mixed with technology and semiconductor shares falling after Broadcom’s weak guidance while the Dow and Russell 2000 hit record closes as investors bought dips.
- Stress surfaced in private credit as large redemption requests prompted managers including Blackstone to cap withdrawals, highlighting liquidity strain in alternatives.
- Investors are tightly focused on the upcoming U.S. May nonfarm payrolls report because its outcome will affect Federal Reserve expectations and could quickly shift positioning across stocks, bonds and currencies.