Stock prices in the United States experienced a back-and-forth movement during Friday because investors analyzed both the potential U.S. military engagement in the Israel-Iran conflict and new inflation warning signs.
The White House announced on Thursday that President Donald Trump will decide within the next few weeks about deploying U.S. military forces. Major indexes experienced unpredictable trading because of geopolitical uncertainty and inflation concerns.
The market remains anxious because Trump alternates between supporting diplomatic solutions and indicating possible military action. The Iranian government has shown signs of reducing uranium enrichment activities which led to new diplomatic negotiations in Geneva.
The market remains in a state of waiting according to Adam Sarhan from 50 Park Investments. “Everyone’s looking for the next big catalyst.”
The Federal Reserve officials have identified rising import tariffs as a threat to inflation which puts additional pressure on interest rate decisions. The Federal Reserve Governor Chris Waller suggested that interest rate cuts might be necessary if inflation data continues to show weak numbers.
The market continues to observe which between geopolitical events and macroeconomic indicators will determine the future direction of asset prices.
