Wall Street is adopting a cautious stance as major U.S. indices remain near Friday’s closing levels, lacking a strong catalyst for movement. Investors are closely watching Wednesday’s earnings reports from key players in the Magnificent Seven—Alphabet, Microsoft, Amazon, and Apple—alongside the Federal Reserve’s interest rate decision. While rates are expected to remain unchanged, market attention will center on Fed Chair Jerome Powell’s comments regarding future monetary policy.

Geopolitical tensions are also influencing market sentiment, particularly following Iran’s proposal to ease pressure around the Strait of Hormuz, a vital oil shipping route. This development has contributed to a surge in Brent crude prices, which recently topped $100 per barrel, reflecting heightened geopolitical risk. In contrast, European markets and precious metals have shown weakness, with gold and silver prices declining.

As earnings season and the Fed’s decision loom, market professionals should brace for potential volatility, particularly in sectors sensitive to interest rate changes and geopolitical developments.

Source: xtb.com