Oil, gold, rates, and dollar decrease after Middle East ceasefire, impacting market uncertainty

From Yahoo Finance: 2025-06-24 06:14:00

After a tentative Middle East ceasefire announcement, U.S. crude, gold, Treasury yields, and the dollar erased gains since Israel’s initial Iran attack. Energy market worries remained subdued, with U.S. oil price gains never turning positive in the past 12 days. Trump’s ceasefire statement led to oil tumbling 4%, global shares rising, and the dollar falling. Israeli Defense Minister ordered military strikes after Iran violated the ceasefire.

The impact of plunging immigration and America’s aging population on the U.S. labor market may influence the Federal Reserve. The flow of migrant workers to the U.S. has halted, leading to potential job growth falling to under 10,000 per month by next year. Fed officials remain hawkish despite these trends, with potential GDP growth slowing.

Fed Chair Powell’s testimony coincides with dovish remarks from colleagues and pressure from Trump to cut rates by “two to three points.” Fed members are divided on rate cuts, with some advocating for immediate easing. The combination of economic slowdown, trade uncertainties, and potential worker shortages could complicate the Fed’s policy decisions. Treasury yields reacted to rate signals and oil price relief, with benchmark 10-year yields dropping below 4.3% for the first time in six weeks.

Tesla shares surged after the company began testing its robotaxi service. U.S. immigration trends, with a significant drop in migrant workers and an aging population, are expected to impact potential job growth and GDP in the coming years. Fed’s full employment mandate could face challenges if worker shortages lead to wage pressure and inflation concerns. Fed policymakers are split on rate cuts, with some advocating for immediate easing to address economic slowdowns.



Read more at Yahoo Finance: Oil, rates and the dollar tumble