Why are global markets in a 'holding pattern' ahead of Nvidia's second-quarter earnings report?

Global markets are in a 'holding pattern' as traders await Nvidia's second-quarter earnings, which will serve as a critical test of confidence in the AI trade; over the previous 12 quarters, Nvidia's market value has swung by an average of 7.4% following its earnings reports, and this time options traders are pricing in a more muted 5.4% (or $280 billion) move, reflecting heightened scrutiny of the AI-driven rally.

What recent development involving Iran and the Strait of Hormuz contributed to lower oil prices, and what is the underlying reality about supply constraints?

Iran's announcement that it had restarted talks with Oman to manage the Strait of Hormuz amid heightened U.S. economic pressure contributed to rising optimism and a third straight daily decline in Brent crude futures—down more than $2 to $86.22 per barrel—yet commodity vessel transits through the strait hit their lowest level in three months, underscoring persistent supply constraints from the nearly six-month-long conflict, revealing that the market's optimism lacks immediate evidence of actual supply relief.