On Monday, investors dialed back their safe-haven positions as concerns regarding a wider conflict in the Middle East eased, leading to gains in global equities while putting pressure on gold, oil, and bond prices.

MSCI’s global stocks gauge rose by 0.35%, reflecting the positive sentiment in equities markets. Conversely, spot gold experienced a significant decline of 2.1%, dropping to $2,340.25 per ounce, marking its largest one-day drop in over a year.

On Wall Street, major indices saw modest gains, with the Dow Jones Industrial Average rising by 0.13%, the S&P 500 gaining 0.19%, and the Nasdaq Composite edging up 0.09%.

Investors have been adopting cautious positions on Fridays in recent weeks, fearing an escalation in Middle East tensions over the weekend when markets are closed. However, signs of de-escalation between Israel and Iran have alleviated some concerns.

Nevertheless, investors remain watchful of other factors, including expectations of Federal Reserve interest rate cuts and concerns about earnings in the chip sector.

More than 150 companies in the S&P 500 and 173 companies in the STOXX 600 are expected to report first-quarter results this week, adding to market volatility.

The STOXX 600 index rose by 0.68%, while MSCI’s broadest index of Asia Pacific shares outside Japan increased by 0.95%.

Bond yields, which move inversely to prices, were generally rising, with benchmark U.S. 10-year notes rising to 4.625%. The dollar index, measuring the currency against six major peers, remained steady.

Crude oil prices declined, with Brent futures falling to $86.79 per barrel and U.S. crude dropping to $82.92 per barrel, as traders refocused on fundamentals amid a rise in U.S. stockpiles.