News that Donald Trump appears inclined toward military action against Iran has weakened risk appetite across financial markets. With two significant developments expected to impact markets tomorrow, analysts warn that the looming Iran factor will make navigating global markets even more challenging. As a result, both traditional and cryptocurrency investors are bracing for heightened volatility. What are the latest pivotal updates, and how are cryptocurrencies responding amid this uncertain climate?
Panic Returns to Equities and Cryptocurrencies
Earlier this week, stocks tied to artificial intelligence regained their footing after a bout of losses. That brief respite, however, was short-lived: growing fears over US-Iran tensions have upended momentum once more. While stock indices lost steam, oil prices staged a recovery. Futures for the S&P 500 erased earlier gains after the head of the United Nations’ nuclear watchdog cautioned that diplomatic opportunities to resolve Iran’s nuclear program were rapidly fading.
The Nasdaq 100 futures dropped 0.4% as tech stocks again faced mounting selling pressure. Heightened geopolitical risks are compounding already jittery investor sentiment, sending both equities and digital assets into retreat. The market remains on edge over developments in artificial intelligence, which had already instilled anxiety across global markets.
Skepticism runs deep over whether AI can truly reshape industries, with many doubting that massive capital inflows will deliver the expected returns. Investors remain cautious about whether the S&P 500’s key growth drivers over the past three years can be sustained, at times prompting sharp sell-offs. Numerous tech selloffs linked to AI skepticism have unfolded in the past four months.
Anticipation Builds for Tariffs and Key Economic Data
All eyes are on tomorrow, as a decision on customs tariffs could inject fresh chaos into markets. Investors are also awaiting the PCE inflation report, which is likely to determine whether the US Federal Reserve will proceed with interest rate cuts at its next two meetings.
Among the 100 largest cryptocurrencies, none managed to post gains above 3% as the day progressed. Meanwhile, tokens such as M, PIPPIN, H, and STABLE all endured double-digit losses. The broader market mood remains fragile, with sentiment soured by the interplay between AI uncertainty and heightened geopolitical tensions.
The minutes from the latest Federal Open Market Committee (FOMC) meeting point toward possible rate cuts in the coming period. However, some officials have left the door open for rate hikes should inflation reverse course. Meanwhile, the Federal Reserve injected $18.5 billion in liquidity through overnight repo operations.
Some FOMC members indicate a willingness to raise rates again if inflation trends higher, while others remain focused on the case for cuts, the meeting records reveal.
OpenAI is reportedly on the brink of securing over $100 billion in funding, with its valuation approaching $850 billion. On the product front, new spot SUI ETFs featuring staking capabilities have launched, courtesy of Grayscale and Canary. The Ethereum Foundation has unveiled its key protocol priorities for 2026, while Solana’s real-world asset (RWA) value surged 58.7% quarter-on-quarter to reach $1.1 billion. Major corporate moves were also seen, with BitMine acquiring 35,000 ETH, and OpenAI rolling out a new crypto smart contract benchmarking system.
Goldman Sachs CEO David Solomon has disclosed the institution’s official position on Bitcoin. Meanwhile, World Liberty announced plans to tokenize assets linked to Trump’s Maldives hotel project, further intertwining real estate and digital finance.
