Global tensions simmer as wall street eyes key economic indicators

The Middle East remains a powder keg, with no major breakthroughs in sight, yet investors continue to await a pivot that seems perpetually out of reach. Meanwhile, on the economic front, several pivotal events are looming that could be the catalysts markets have been hoping for. The Fed's policy meeting, Big Tech earnings, and US GDP figures will set the tone on Wall Street this week, regardless of what transpires in the Middle East.

Brent crude surges amid ongoing tensions

Oil prices refuse to relent, with Brent crude jumping 1.3% to around $106.70 per barrel following news that President Donald Trump cancelled weekend talks with top envoys in Pakistan. Iran has reportedly signaled willingness to accept a provisional deal to reopen the Strait of Hormuz in exchange for the US lifting its port blockade, according to Axios.

On Wall Street, the S&P 500, up nearly 10% this month, slipped 0.16%, while the Dow Jones lost 0.24% and the Nasdaq slid 0.29%. The markets remain in a state of flux amid the Iran crisis, with oil providing the only respite.

Ai in the crosshairs as big tech reports earnings

This week, giants like Alphabet, Amazon, Meta, Microsoft, and Apple will release their quarterly results, shedding light on the impact of their massive investments in artificial intelligence and infrastructure. Investors will be keen to see if these expenditures are yielding tangible dividends for the tech titans.

Central banks take center stage

Additionally, major central banks, including the Federal Reserve, the European Central Bank, the Bank of Japan, and the Bank of England, will announce their interest rate decisions. Crucially, a batch of key economic data is also set to be released, including the Fed's preferred inflation gauge, the latest US growth figures, and the Conference Board's consumer confidence survey.