The global macro picture is shifting. Asian government bonds faced a sell-off today, driven by concerns that the escalating conflict in the Middle East will fuel inflation and potentially lead to accelerated interest rate hikes. This comes as Iran prepares for a potentially prolonged conflict, according to recent reports. The pain from a Strait of Hormuz blockade would be felt most acutely in Asia, but the impact would ripple through global markets.
In the U.S., tech stocks showed relative strength. MSFT climbed 1.48%, while AAPL saw a modest gain of 0.20%. GOOGL, however, bucked the trend, declining 1.68%. The IWM also saw positive movement, gaining 0.92%. The DIA edged slightly lower, down 0.10%.
Domestically, lawmakers are reportedly considering reallocating $190 billion in funds from Trump's Big Beautiful Bill to the TSA amid ongoing DHS funding issues. Past government shutdowns have caused widespread disruption for the airline sector with major cancellations, delays and staff shortages. Elsewhere, Huawei unveiled its NG WAN architecture at MWC Barcelona 2026, aiming to boost growth for telecom carriers.
SPY ended the day up 0.06% at $686.38, and QQQ rose 0.13% to $608.09, suggesting a measured risk appetite despite global uncertainties. Macro regimes don't change overnight—but when they do, it matters.