Deutsche Bank’s Jim Reid highlights that global equities have turned lower after new US strikes and sanctions on Iran, following a session where US indices hit fresh record highs. The S&P 500 and Nasdaq had just notched marginal gains, while European benchmarks traded near records, but futures and Asian markets are now weaker as investors reassess risk and growth expectations.

From record highs to broad-based pullback

"Given the rally in Oil, US Treasury yields are back up 4 to 4.5bps across the curve this morning with the 10yr yield at 4.53% as I type after a 5-day rally."

"S&P (-0.37%) and Nasdaq (-0.80%) futures are lower after the cash markets in yesterday's session hit all time highs at the same time, along with the DOW, for the first time in 2026."

"In Asia the KOSPI (-3.61%) is the largest underperformer with the Hang Seng (-2.12%) also burdened by weakness in technology shares, along with the Nikkei (-1.34%)."

"Before this morning's sell-off, equities saw a mixed performance yesterday as investors grappled with the various headlines."

"In the US, the S&P 500 (+0.02%) and Nasdaq (+0.07%) narrowly posted new record highs, while the Mag-7 (+0.92%) outperformed."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)