Trump Cancels Iran Strike, Markets Rebound as Crude Oil Prices Plummet

US President Trump's decision to cancel a planned military strike against Iran has boosted market sentiment and led to a sharp drop in crude oil prices. The S&P 500 index rose 0.7% on Friday, while Amazon's strong earnings offset Apple's record slide of 7.4%, which resulted in a $358 billion loss in market capitalization. The Nasdaq 100 futures pointed higher on Monday, tracking the risk-on tone from the Iran de-escalation.

The University of Michigan's Consumer Sentiment Index was revised up to 55.2 in July, with gains across all groups, although sentiment remains 11% below a year earlier amid concerns over high prices. Year-ahead US inflation expectations fell to 4.2%, and the five-year outlook held at 3.3%. Canada's GDP is expected to grow 0.2% in June.

Crude oil prices rebounded from intraday lows on Monday, with October Brent steadying near $83.50 per barrel, down over four dollars from Friday's close. The US Treasury yields rolled back lower with crude oil prices. Meanwhile, the Japanese yen strengthened further after the confirmation of coordinated intervention between the US and Japan.