News & Insights
Markets continued to process the strength of last week’s nonfarm payrolls report, which reignited fears of a Fed tightening cycle.
The War with Iran dominated headlines and markets again this week after reports from last weekend that a deal was forming to reopen the Strait of Hormuz. Equity markets ate up the news with the major indices hitting new all-time highs on optimism that a deal would be reached and the conflict would end.
The week was defined by three interlocking forces: an unresolved Middle East conflict, a resurgence in global inflation and a leadership transition at the Fed that collectively rattled financial markets and reset monetary policy expectations.
The week was marked by unexpected developments in the Middle East and the beginning of significant changes at the Fed. On Tuesday, the United Arab Emirates (UAE) announced it was leaving OPEC for unspecified reasons, effective today.
The war with Iran continued to drive headlines this week as President Trump extended the ceasefire indefinitely after failing to reach terms with Iran. As of this writing, the Strait of Hormuz remains closed to most commercial traffic with the U.S. continuing its blockade of Iranian ports.
The week began with President Trump announcing a total blockade on all traffic to Iranian ports through the Strait of Hormuz, following a perceived lack of progress on negotiations with Iran. Despite the escalation, markets took it as a sign of progress in negotiations, with the S&P 500 hitting 7,000 for the first time ever on Wednesday
Once again, the week’s economic activity was driven by headlines and continued geopolitical tensions between the U.S., Israel and Iran.
Volatility continued to be the driving theme for markets while conflicting messages about a resolution to the Iran war permeated headlines throughout the week. President Trump warned Iran that they had until Monday night to reopen the Strait of Hormuz or he would begin strikes on critical energy infrastructure
Oil prices surged 29% last weekend, topping $100/barrel for the first time since July 2022. Equity markets experienced declines all week, with losses deepening at first.
The week began with market reactions to the announcement that the Supreme Court had struck down President Trump’s sweeping 2025 tariff policies. The Court ruled in a 6-3 decision that Trump had exceeded his authority in imposing emergency import taxes.