Three Major US Stock Index Futures Rise Over 1% in Asian Trading, Easing Geopolitical Expectations Drive Market V-Shaped Reversal

TradingKey - Driven by a rapid reversal in geopolitical expectations, global market sentiment has clearly recovered. The three major U.S. index futures collectively strengthened during the Asian trading session, with gains expanding beyond 1%, as risk assets staged a tactical rebound.

On the news front, Trump's latest remarks became a turning point for the market.

According to media reports, Trump told aides that he is willing to push for an end to military action against Iran even if navigation in the Strait of Hormuz has not been restored. This statement was interpreted by the market as a potential de-escalation of the conflict, significantly easing previous tensions.

Previously, affected by the Iranian attack on a Kuwaiti tanker, market risk aversion spiked sharply, and oil prices surged, with WTI crude breaking the $106 mark, weighing on global risk assets.

As expectations reversed, commodities and safe-haven assets retreated in tandem. Both WTI and Brent crude turned lower, while gold and silver prices edged higher.

Asia-Pacific stock markets also showed a "V-shaped reversal." The Nikkei 225 and KOSPI plummeted at the open, but losses narrowed quickly, and the Nikkei turned positive, reflecting the market's sensitive reaction to easing geopolitical risks.

In addition, Fed Chair Jerome Powell's previous downplaying of short-term inflationary pressures from rising energy prices also stabilized interest rate expectations to some extent, providing support for risk assets.