The Fed and geopolitical tensions shape the markets.

During today's session, the markets eagerly awaited the statements of Fed Chairman Jerome Powell. Powell suggested that a shift from a dovish stance on monetary policy could occur as early as the next meeting. He emphasized the growing number of Fed officials who support moving to a neutral monetary policy stance. The current Fed interest rate is 3.50-3.75%, and according to forecasts, there is no chance of a cut in the near future. Additionally, Powell expressed the expectation that tariff inflation will decrease over the next two quarters, which is a positive signal for the market. These comments indicate the possibility of stabilizing monetary policy, which may influence further investment decisions.

International Situation

On the international stage, the situation in the Middle East remains tense. Iran has once again emphasized its intentions for retaliation for the killing of their leader, as highlighted by Iranian television. These statements increase uncertainty in the region, which may affect oil prices and energy security. Additionally, former US President Donald Trump noted Iran's progress, raising questions about their future actions. These events may lead to increased volatility in energy markets and impact the currencies of countries associated with this region.

In the technology sector, the company META announced that it will extend the operation of some servers due to a memory shortage. This decision may indicate difficulties in the supply chain of technological components, which could affect the pace of innovation and the development of new technologies. These shortages may lead to an increase in the prices of computer hardware and delays in the execution of technological projects.

Tomorrow will bring further market reactions to Powell's statements and the geopolitical situation in the Middle East. Investors should closely monitor the developments in Iran and any new signals regarding the Fed's monetary policy. Additionally, it is worth monitoring the technology sector for potential supply chain issues.