June 8, 2026

Iran halts its attacks against Israel, which began over the weekend

International

Following Iran's attacks on Israel over the weekend—in response to Israeli airstrikes in Lebanon—the situation showed signs of easing this morning, bringing calm to global financial markets. The Iranian military command claimed to have ended its military operation, although it warned that retaliation could continue if Israel resumes airstrikes.

Last Friday, major US stock indices suffered widespread declines. The Nasdaq was the biggest loser, falling 4.2% during trading, while the S&P 500 dropped 2.6%. Finally, the Dow Jones Industrial Average declined 1.3%. Year-to-date, the indices are projected to gain 10.6%, 7.9%, and 5.8%, respectively.

Meanwhile, after the release of the May jobs report, US Treasury yields widened across the entire yield curve. The 1-year bond closed with a yield of 3.84%, up from 3.79% previously, while the 3-year bond settled at 4.20%, also surpassing the previous 4.10%. Finally, the 10-year bond yield rose from 4.47% to 4.53% at the close.

This week, the focus will be on the May inflation data. The Consumer Price Index (CPI) is projected to rise by 0.5% for the month and by 4.2% year-on-year. The overall inflation rate, which excludes food and energy, is expected to be 0.3% monthly and 2.9% year-on-year.

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