Geopolitical Tensions Generate Market Pullback - Why the Correction Could Worsen
Markets are bracing for a prolonged pullback as geopolitical tensions and shifting monetary policy expectations weigh on sentiment. Fewer rate cuts are now anticipated in 2025, dampening the bullish case for risk assets. ETF inflows have lost momentum, signaling a cooling of institutional interest.
The downturn comes ahead of a critical FOMC meeting, where policymakers may reinforce a hawkish stance. Without fresh catalysts, the correction could deepen, particularly in speculative segments of the market.