Global Markets: Geopolitical Tensions and Fed Expectations as Focus Shifts to Nvidia Earnings

Geopolitical Risks and the AI Impact Global equity markets concluded the past week on a positive note despite rising geopolitical risks, particularly the tensions between the U.S.
and Iran.
Market sentiment was bolstered by strategic partnerships in the field of artificial intelligence and expectations that the U.S.
Federal Reserve (Fed) will eventually move toward interest rate cuts.
A multi-year strategic partnership agreement signed between Meta and Nvidia emerged as a key factor supporting risk appetite within the technology sector.
Critical Supreme Court Ruling on Tariffs A major development in the U.S.
economic agenda was the Supreme Court's decision regarding additional customs duties implemented by President Donald Trump.
The court ruled that the International Emergency Economic Powers Act (IEEPA), upon which the tariffs were based, does not grant the president such authority.
Following the ruling, Trump expressed disappointment and signaled that alternative methods, such as the Trade Act of 1974, could be utilized to maintain trade policies.
Economic Data and the Fed's Rate Path U.S.
economic growth data is currently undergoing a resilience test due to the impact of a 43-day government shutdown and a slowdown in consumer spending.
Recent Fed meeting minutes revealed that while there is policy divergence among members, rate cuts could be considered if inflation continues to slow down.
In money markets, expectations for the first interest rate cut, previously anticipated for June, have begun to shift toward July.
Market Status and Outlook On a weekly basis, the U.S.
10-year Treasury yield rose to 4.09%, while the dollar index stabilized at 97.8.
Geopolitical concerns and threats regarding the Strait of Hormuz pushed oil prices higher, with Brent crude rising 6% to reach $71.2 per barrel.
In the coming week, markets will closely monitor U.S.
producer inflation data, statements from Fed officials, and the highly anticipated earnings report from technology giant Nvidia.