U.S. Indexes closed mixed on Monday, with the Dow Jones outperforming in the green, while the other major indices closed lower. Weakness was led by the NASDAQ 100 as the Technology sector underperformed, with both semiconductor and memory names under pressure. Despite the broader downside, the equal-weight S&P 500 was flat, while sectors were mixed. Consumer Staples, Communication Services and Financials led the gains, while Technology, Energy and Industrials lagged. Energy prices settled lower despite the Treasury confirming harsh sanctions on Iran under Operation Economic Outcast, targeting nearly 60 Iranian entities, individuals and vessels, alongside secondary sanctions aimed at five key Iranian sectors: digital assets, technology, gold, aviation and shipping. The administration’s focus on intensifying economic pressure rather than further military action may have helped keep some pressure on crude. Meanwhile, sources reported that President Trump spoke with the Pakistani Army Chief last week ahead of his visit to Tehran, with Trump reportedly wanting Pakistan to use its influence to bring Iran back to the negotiating table, suggesting there remains some willingness from the administration to pursue diplomacy. The Treasury curve bull flattened on Monday, with source reports surrounding buybacks supporting the long end. CNBC reported that Treasury could use the TGA to fund its long-end buyback operations, while FBN’s Gasparino reported that other potential measures could include further buybacks, greater short-term issuance and even changes to long-dated issuance, including the possible elimination of the 20-year bond. In FX, the Dollar gained, with some strength seen following Bessent’s announcement on Iran, while the Canadian Dollar lagged after Trump confirmed tariffs on Canadian autos, auto parts and steel would rise to 50% from 1st January 2027. Meanwhile, Gold added to its recent gains amid falling Treasury yields, although it settled off highs as the Dollar strengthened. Attention this week remains on US-Iran developments, with Iran vowing an economic response to the latest US measures. Fed Chair Warsh, Nvidia earnings, US PCE and the BLS annual payroll benchmark revisions will also be in focus, alongside US Treasury supply and any further developments surrounding Treasury buybacks or the administration’s view of the yield environment. The US Treasury Secretary announced Operation Economic Outcast on the Iranian economy. The sanctions target nearly 60-Iran linked entities, people, and vessels across nuclear, missile, cyber and oil networks. It also is targeting five sectors for potential secondary sanctions; Digital assets, tech, Gold, aviation and shipping. A network of broker company shadow fleet vessels was also targeted across UAE, Hong Kong, China, Singapore, Switzerland and Europe. Treasury Secretary Bessent said that the actions will tighten the noose and block every potential source of revenue that funds the IRGC and Iranian regime, stressing they are enforcing a zero-leakage approach. He also stressed that Iran’s enablers purchase and transport its petroleum and turn a blind eye to seaborne oil transfers and overland transits. Bessent added that US President Trump has been calling world leaders to cut their economic ties with Iran, noting there is a finite timeline to shutdown activities identified by the Treasury. He added there is no set timeline, but they do not have infinite patience. Bessent also noted that a major financial institution will be sanctioned by the end of this week over Iran, adding the US will end Dollar access to those laundering Iran money. Overall, there was little reaction but the Dollar did see some strength while Gold sold off marginally. Treasury yields fell across the curve on Monday, with the long end outperforming and resulting in a bull flattening of the curve. The front end was relatively anchored in comparison, while yields declined by as much as 5 basis points further out the curve. Focus remains firmly on the long end following last week’s Treasury buyback announcement. The latest source reports suggested that the Treasury could use funds from the Treasury General Account, which currently stands around USD 1 trillion, to finance additional buybacks. Meanwhile, FBN cited Wall Street executives familiar with Bessent’s thinking as saying he will do whatever it takes to “put the fear of God” into bond vigilantes who short the long end in an attempt to drive the 10-year yield towards 5%. The report suggested potential measures could include further buybacks, greater short-term issuance and even changes to long-dated issuance, including the possible elimination of the 20-year bond. Elsewhere, Oil closed lower by over 2% while Gold ended Monday’s session with a 1.5% gain.
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For anyone following my Platinum Service it made 160 points yesterday and is now ahead by 2340 points for August after closing July with a gain of 8031 points, after ending June with a new record of 10527 points after ending May with a loss of 1104 points, having ended April with a gain of 1730 points, after ending March with a massive gain of 9002 points, having closed February with a strong gain of 5482 points after ending January with a gain of 4757 points, having closed December with a gain of 2599 points, after ending the month of November with a gain of 4542 points, after ending October with a nice gain of 5110 points after closing September with a gain of 3774 points while ending August with a gain of 3362 points after closing July with a gain of 3753 points after closing June with a gain of 3530 points, having closed May with a gain of 3606 points, after closing April with a gain of 7685 points after closing March with a gain of 2254 points while closing February with a gain of 4180 points. January ended with a gain of 2768 points while 1997 points were gained in December. October ended with a gain of 2179 points, after closing September with a gain of 4402 points, following a loss of 301 points in August. July gained 1908 points while June saw a gain of 2074 points. The Platinum Service made a previous record 9619 points in October 2022. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 2300 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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