Geopolitical Tensions and Economic Data Vie for Market Attention

Federal Reserve Chair Jerome Powell's upcoming congressional testimony takes center stage this week, following the central bank's decision to maintain steady interest rates. Investors will scrutinize his remarks for clues on future monetary policy direction, particularly in light of Friday's critical PCE inflation report—the Fed's preferred gauge for measuring price stability.

Meanwhile, escalating Middle East tensions have introduced fresh volatility into global markets. U.S. military strikes against Iranian targets mark a significant escalation in regional conflicts, with crude oil prices already reflecting a 10% surge since hostilities began. The geopolitical risk premium now competes with economic fundamentals for traders' attention.

Corporate earnings from Nike, FedEx, and Micron will provide insights into how global supply chains are adapting to both tariff pressures and geopolitical disruptions. Technology stocks showed resilience last week despite broader market weakness, suggesting sector-specific opportunities may emerge regardless of macroeconomic headwinds.