US equity markets fell sharply on Friday, with the SPX closing 2.92% lower and the NDX closing 5.12% lower, marking one of the worst falls in history for the index. Both indices have stabilised during the Asian session on Monday, with the SPX index trading higher, up 0.81%, while the NDX index is up 1.55%.
One of the major reasons for a sharp fall on Friday was the Nonfarm Payrolls report coming in much stronger, at 172K, compared to forecasts of 85K. Even though this signals a strong US economy, it fuels rate-hike concerns, which would increase borrowing costs for companies eyeing higher investment in AI infrastructure, pressuring overall markets. On top of that, slight caution may be warranted given Broadcom’s weaker-than-expected earnings guidance, which is already shaking up the AI theme and investor sentiment, while the upcoming SpaceX IPO on Friday may prompt investors to sell other assets to raise cash for the biggest listing in history. Despite this, the bull thesis remains intact, as major tech companies remain fundamentally sound, evidenced by Google’s recent $80 billion capital-raising round to fund further AI Capex, while stocks like Marvell may get a boost after being added to the S&P 500 index on Friday.
From a technical standpoint, despite falling below the 9- and 21-day EMAs, the SPX index is holding near support from the lows of 20th May, around $7342. The next potential support could come from the 50-day EMA near $7271. Although the daily RSI witnessed a sharp fall on Friday, early gains on Monday, with the RSI now sloping upwards and above the 50 mark, indicate momentum regaining. The NDX index is also finding support near the $28,700 mark, based on the mid-May lows, and rising thereafter.
Crude Oil
Crude Oil is starting the week by seeing a rise after seeing escalations between Iran and Israel, causing prices to rise after new waves of missiles were launched. With Brent prices at $97.38 per barrel, while WTI is holding around $95.7 up 3.9% per barrel, supported by ongoing regional instability in the Middle East and potential supply disruptions.
Even though the overall fear of immediate escalation throughout the Middle East has somewhat eased, traders remain cautious as market sentiment is being dominated by direct Israel-Iran relations. The security of Strait of Hormuz remains a key focus for energy markets and continues to underpin prices. Over the weekend, investors closely monitored diplomatic efforts with current negotiations caused Brent to show a support level above the $92.00 region, which continues to act as an important near-term support level. A sustained move above $98.00 could bring the $104.00 mark back into focus, followed by stronger resistance around $110.00. On the downside, a reduction in geopolitical tensions could see Brent retreat toward $91.00, with stronger support located near $88.00. WTI continues to hold above key support near $92.00. A break above $98.50 could open the door for a move toward $104 region, while easing geopolitical risks could pressure prices back toward $89.00.
As a result of geopolitical risks, premiums remain embedded in oil prices with traders reluctant to aggressively reduce long positions until there is clearer evidence of de-escalation. Any further disruptions to energy infrastructures or shipping routes would likely trigger renewed upside prices on oil.
Gold & Silver
Today, gold extended its losses, declining 0.6% to $4,303, while silver fell 1.15% to $67. Last week, gold fell nearly 5% and is off more than 20% since the war in Iran began in late February, a pronounced reversal of the metal’s usual role as a geopolitical hedge.
The Strait of Hormuz blockade has sparked a strong rally in Brent crude prices since the start of the war, leading to energy-driven inflation and a massive repricing of the entire Fed path. Additionally, a new consensus has formed around a 25 bps hike by the end of the year. Gold is a non-yielding asset that is priced in US dollars, so both aspects of this move, higher rates and a stronger dollar, Â push gold lower. Moreover, the US jobs report for May came in stronger than all forecasts, wiping out gold’s year-to-date gain as yields jumped and bets on rate cuts were totally pushed out of the curve.
Gold is being sold because investors need cash and are raising capital to cover losses or margin calls elsewhere in the market. As a result, the US dollar is currently the primary safe-haven asset.
That said, long-term demand for gold remains strong. Central banks continue to buy heavily, with the People’s Bank of China adding about 10 tons to its gold reserves in May. This was its 19th consecutive month of gold purchases.
Gold has broken below the $4,400 support zone, now acting as resistance, and price action is being driven by intense bearishness, with large-bodied candles and few signs of demand or reversals. First support is near the $4,235, with a risk of further downside towards $4,200 in the near term. Any bounce is likely to be corrective and may attract more sellers, unless price can reclaim and hold above $4,475 on a 4H close.
Silver is experiencing a sharper bearish move; while the speed of the move suggests the market is short-term oversold and could see a technical bounce toward 69–70, the overall trend remains decisively bearish. Any recovery is likely to be sold, unless price can reclaim and sustain above $73 on a 4H close. Meanwhile, support can be seen at $64-$61.8
In the past week, UAE equity markets held strong overall despite fading hopes for a diplomatic breakthrough in the U.S.-Israel conflict with Iran. As the week begins, the DFM and ADX indices are down by almost 1%, considering the intensifying geopolitical situation in the Middle East. However, they are still holding well after the global markets witnessed a selloff on late friday. On the macro front, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum recently approved Dubai’s new AED 1.5 billion economic incentives package. Together with the AED 1 billion package announced earlier this year in March 2026, the total support now stands at AED 2.5 billion. This move reflects a targeted and proactive policy response aimed at reinforcing business resilience and supporting SMEs. The measures are broad-based and designed to ease operational pressures across sectors, including tourism, trade and logistics, real estate, construction, education, and arts and cultural activities.
- DFM General Index
The DFM General Index was marginally up by 0.2% in the week ending 5th June 2026, closing the week at AED 5,768. It stands 15% below its 52-week high on Feb 10, 2026 and 11.3% above its low on June 13, 2025.
Top gainers for the week include Talabat Holding (+14.55%), Sukoon Takaful (+9.68%), Gulf Navigation Holding (+6.2%), Salik Co (+6.73%), and Emirates Integrated Telecommunication (+4.64%). On the other side, the laggards were notably Dubai National Insurance (-5.76%), Takaful Emarat Insurance (-5%) and Emaar Properties (-3.74%).
Talabat’s performance was driven by Uber’s recent increase in its stake in Delivery Hero from 19.5% to 36.8%. Delivery Hero is the parent company of Talabat. The transaction is viewed as an indication of Uber’s strategic interest in the MENA food delivery space. Furthermore, optimism is also fostered by the recent share buyback program, which includes a 5% share repurchase initiated on May 18th.
Looking at sector-wise performance, sectors that ended the week in positive territory are consumer discretionary (+12%), followed by communication services (+4.64%) and consumer staples (+3.76 %). On the contrary, the real estate sector fell by almost 3% last week, weighing on the overall index.
On the daily chart, the DFMGI is now trading at AED 5,713 and consolidating around the 9 and 21-day SMA levels of AED 5,722 and AED 5,746, respectively. A close above the 200-day SMA at AED 5,872 will be crucial for the index and could strengthen the bullish trend. Otherwise, it could find support at AED 5,600, followed by the March low of AED 5,400.
- ADX General Index:
The ADX General Index declined nearly 1% by the end of the week, closing at AED 9,614, amid unsuccessful efforts to resolve the Middle East conflict.
On the sectoral front, the indices that ended the last week in green are the basic materials index (+1.5%), the consumer discretionary index (+1%), and the consumer staples index (+0.7%). Most sectors ended in negative territory. The utilities sector experienced the largest decline, at almost 6%. This was followed by the telecommunications and technology sector, which declined by almost 4%, weighing on the overall index.
From a technical standpoint, on the weekly timeframe, the index has formed an ascending trendline connecting the lows of AED 8,834, AED 9,158, and AED 9,506. A close above the 21-day SMA at AED 9,682, followed by resistance at AED 9,930, will be bullish for the index. Otherwise, it may find support at the 200-week EMA of AED 9,307.
Looking Ahead, there are no earnings scheduled in the coming week. Investors will closely watch the geopolitical events and their impact on the local companies. A resolution to the conflict may be a major catalyst for bullishness in the near term.
