Markets Await Nvidia Earnings as US-Iran Tensions Escalate

The global markets are bracing for several key events this week, including the release of Nvidia's earnings and the Federal Reserve meeting. The US Treasury is also set to unveil a plan to economically isolate Iran.

In a sign of escalating tensions between the US and Iran, Bessent told FT that the US is entering an 'endgame' with Iran as economic war intensifies. In response, Iran warned that support for its economic isolation would be treated as an 'act of war'. Meanwhile, Trump reshares a map of the Strait Of Hormuz, labeling it 'new US territory', further fueling tensions in the region.

The Brent crude price dropped over 1% to below $93 a barrel. Asian markets were largely lower, with the Nikkei 225 and Kospi dropping 0.1-0.7%. However, US markets ended Friday on a positive note, with the Dow, S&P 500, and Nasdaq gaining 0.4-0.9%.

Tesla shares saw their best weekly jump since early May, while the MSCI all country world index suffered a 1% weekly drop. The US 10-year yield gained 3 bps to 4.7%, and the US 30-year yield advanced 3 bps to 5.2%. All eyes are on Fed Chairman's speech at Jackson Hole this week, as well as Nvidia and Marvell Tech's earnings reports.

In cryptocurrency news, Bitcoin saw its strongest weekly gain in more than three years, rising 23% last week. It also experienced the largest weekly inflows since January. Gold prices reached a three-month high of $4,619.57 per ounce.