US Tariff Ruling and Geopolitical Risks Dominate Global Markets

Geopolitical Risks and Fed Rate Expectations Global equity markets concluded last week on a positive note, driven by strategic collaborations in the technology sector and expectations for Federal Reserve interest rate cuts, despite ongoing uncertainties in the Middle East and tensions between the U.S.
and Iran.
The deadline set by U.S.
President Donald Trump for resolving the Iran issue ensures that geopolitical risk perceptions will remain a primary focus for markets in the coming week.
Recent meeting minutes from the Federal Reserve revealed a divergence of opinions among board members regarding monetary policy.
While the message remains that rate cuts are possible if inflation aligns with targets, market pricing suggests that expectations for a June cut have weakened, with the first reduction potentially pushed back to July.
Supreme Court Blocks Trump’s Tariffs The U.S.
Supreme Court issued a landmark ruling regarding the legal basis of tariffs implemented by President Trump.
The court ruled that the International Emergency Economic Powers Act (IEEPA), which the tariffs were based on, does not grant the president such authority in this context.
Trump described the decision as "disappointing" and announced that his administration would explore alternative legal avenues to enforce the tariffs, such as Section 122 of the Trade Act of 1974.
This development has reignited concerns over global trade wars.
Technology Partnerships and Market Data A long-term strategic partnership between Meta and Nvidia served as a key driver for risk appetite in the technology sector.
Following this optimism, the S&P 500 index gained 1.07% weekly, the Nasdaq rose 1.13%, and the Dow Jones increased by 0.25%.
In the commodities market, Brent crude oil prices surged 6% to $71.20 per barrel amid fears that threats to the Strait of Hormuz could disrupt supply.
Meanwhile, the U.S.
10-year Treasury yield ended the week at 4.09%.
Looking ahead, investors will focus on U.S.
Producer Price Index (PPI) data, statements from Fed officials, and Nvidia’s upcoming earnings report.