S&P500 tone remains cautiously risk-on.US 500 (per 1.0)TRADENATION:US500TradeNationFalling oil prices and growing optimism around a possible Iran deal are helping improve risk sentiment and supporting US equities. Brent crude has dropped from $103.54/bbl at the end of last week to around $97.87/bbl this morning, easing inflation concerns and reducing fears of a wider Middle East supply shock. That move is positive for the S&P 500 because lower energy prices help: Reduce inflation expectations Support consumer spending Ease pressure on the Fed to stay aggressive on rates Equity futures are stronger this morning, with S&P 500 futures up +0.62% and NASDAQ futures +0.85%, although gains have moderated after overnight US and Israeli strikes in southern Iran. Markets appear to view the strikes as limited and defensive rather than a collapse of the ceasefire negotiations. Investors are focusing more on the possibility of diplomacy progressing after President Trump suggested talks with Tehran were moving forward. Additional support for markets came from signs Iran could ease internet restrictions internally, which traders see as a potential signal of stabilisation. For S&P 500 trading today: Lower oil prices are supportive for technology, consumer, and growth stocks. Energy stocks may underperform if crude continues lower. Any headlines suggesting progress in negotiations could push the index higher. However, renewed military escalation around the Strait of Hormuz remains the main downside risk and could quickly reverse sentiment. Conclusion: The market tone remains cautiously risk-on. As long as oil continues to move lower and diplomacy stays alive, the S&P 500 is likely to remain supported, with technology and growth sectors leading gains. But geopolitical headlines will continue to drive short-term volatility throughout the session. Key Support and Resistance Levels Resistance Level 1: 7612 Resistance Level 2: 7665 Resistance Level 3: 7717 Support Level 1: 7440 Support Level 2: 7406 Support Level 3: 7370 The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. To the extent permitted by law, in no event shall Trade Nation (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk. Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.