The S&P 500 declined by around 0.3%, while the Dow Jones Industrial Average inched up 0.09%. The tech-heavy Nasdaq 100 dropped 0.59%.<\/p>\n\n\n\n
U.S. equity indices gave up early-session gains in the week\u2019s final trading day, pressured by weakness in semiconductor stocks. The pullback came after The Wall Street Journal<\/em> reported that a senior U.S. official had informed major global chipmakers that Washington may revoke exemptions granted to allies operating semiconductor plants in China.<\/p>\n\n\n\n Stocks initially rose on signs of easing tensions in the Middle East, which also led to a pullback in WTI crude prices. The gains faded after Reuters<\/em> reported that the Iranian government expressed willingness to discuss limits on uranium enrichment.<\/p>\n\n\n\n Friday\u2019s price action was also marked by heightened volatility, driven by the expiry of options, futures, and other derivatives contracts with a notional value of approximately $6.5 trillion.<\/p>\n\n\n\n Equities drew additional support from dovish remarks by Fed Governor Christopher Waller, who said, \u201cI think we have room to bring interest rates down as early as July, and then we can kind of see what happens with inflation.\u201d<\/p>\n\n\n\n Still, markets remained weighed down by lingering concerns from Wednesday, when Fed Chair Jerome Powell warned that tariff-driven economic uncertainty and inflation risks continue to cloud the path for monetary easing. The FOMC also downgraded its U.S. GDP forecast and raised inflation expectations for this year.<\/p>\n\n\n\n Meanwhile, hostilities between Israel and Iran entered their eighth day Friday, as Israel launched new strikes targeting Iranian missile and nuclear facilities, warning it could dismantle Iran\u2019s leadership.<\/p>\n\n\n\n In response, Iran ruled out negotiations with the U.S. as long as Israeli attacks persist. President Pezeshkian stated that the \u201conly way to end this imposed war is to halt the aggression unconditionally.\u201d Iran reiterated its defiance and vowed a forceful response if the U.S. directly joins Israeli military operations.<\/p>\n\n\n\n Dollar Logs Weekly Gains<\/strong><\/p>\n\n\n\n By week\u2019s end, the U.S. dollar posted notable gains, underpinned by a mix of market sentiment, monetary policy outlook, and trade-related tensions.<\/p>\n\n\n\n The dollar index, which tracks the greenback\u2019s performance against a basket of six major currencies, climbed to 98.67, up from the previous week\u2019s close of 98.32. It dipped to a weekly low of 97.82 and peaked at 99.10 during the same period.<\/p>\n\n\n\n The ongoing Israel-Iran conflict was a key driver of dollar strength, with escalating hostilities bolstering demand for safe-haven assets.<\/p>\n\n\n\n Fed’s Position<\/strong><\/p>\n\n\n\n The U.S. currency also benefited after Fed Chair Jerome Powell signaled the central bank is in no rush to adjust interest rates, preferring to wait for more clarity.<\/p>\n\n\n\n \u201cWe\u2019ll make smarter decisions if we wait a few months or until the time is right,\u201d Powell said during the press conference following the Fed\u2019s latest decision. \u201cThe economy is performing strongly, which may allow the Fed to hold rates steady for now while assessing developments.\u201d<\/p>\n\n\n\n Trade War Tensions Resurface<\/strong><\/p>\n\n\n\n Canadian Prime Minister Mark Carney announced that Ottawa will impose retaliatory tariffs in response to U.S. steel and aluminum duties, aiming to use this pressure as leverage in ongoing trade talks with Washington.<\/p>\n\n\n\n Carney said Canada would revise the countermeasures effective July 21, depending on the progress in negotiations. Only producers from Canada and its trading partners exempt from tariffs would be eligible to compete for government procurement contracts. Canada also plans to introduce additional tariffs to address global overcapacity and unfair steel and aluminum trade practices.<\/p>\n\n\n\n Although trade tensions have historically weighed on the dollar, markets appeared to interpret Canada\u2019s move more as a negotiation tactic than a genuine escalation\u2014helping to limit the greenback\u2019s downside.<\/p>\n\n\n\n Weekly Losses for Gold<\/strong><\/p>\n\n\n\n Despite geopolitical strife and military escalations in the Middle East, the dollar\u2019s strength proved overwhelming, capping gold\u2019s appeal as a haven. The precious metal logged weekly losses, pressured by a surging greenback and hawkish Fed signals.<\/p>\n\n\n\n Gold futures dropped to $3,370 per ounce on Friday, down from the prior close of $3,435. The metal touched a weekly high of $3,452 and a low of $3,362 during the same stretch, reflecting investor caution amid turbulent macro dynamics.<\/p>\n\n\n\n Oil Reaps the Rewards of Middle East Tensions<\/strong><\/p>\n\n\n\n Crude oil ended last week on a high note, climbing roughly 1.5% as geopolitical tensions engulf the Middle East, particularly amid ongoing hostilities between Iran and Israel.<\/p>\n\n\n\n U.S. crude futures rose to $73.96 per barrel for the week ending June 22, up from the previous session\u2019s close of $72.91. Over the course of the week, prices dipped as low as $67.88 and reached a high of $75.70.<\/p>\n\n\n\n The volatility stems from fears that ongoing conflict in the region\u2014especially involving key Gulf exporters\u2014could disrupt vital shipping lanes and strain global oil supply.<\/p>\n\n\n\n The fighting, now in its eighth day, erupted last weekend after Israel launched airstrikes on Iranian territory, claiming to target nuclear sites. Since then, Iran has returned fire, with no signs of de-escalation.<\/p>\n\n\n\n Despite the uncertainty surrounding how events will unfold, past precedent offers some comfort: over the last 15 years, similar flare-ups haven\u2019t triggered long-lasting oil price surges or major market disruptions. Structural shifts in the U.S. economy are also playing a role\u2014America has been a net oil exporter for several years, and energy spending has decreased as a share of GDP thanks to improved efficiency and a services-driven economy.<\/p>\n\n\n\n Weekly Losses for the Japanese Yen<\/strong><\/p>\n\n\n\n The U.S. dollar\u2019s strength was a significant factor behind the yen\u2019s weakness over the past week, compounded by Japan\u2019s monetary policy stance.<\/p>\n\n\n\n By week\u2019s end, the greenback logged strong gains, fueled by supportive market sentiment, monetary policy dynamics, and renewed trade tensions.<\/p>\n\n\n\n Bank of Japan Governor Kazuo Ueda noted that interest rate hikes could be on the table if economic forecasts point to rising inflation. But by the week\u2019s close, the BoJ left rates unchanged and continued tapering its crisis-era purchases of Japanese government bonds\u2014a form of quantitative easing\u2014placing additional pressure on the yen.<\/p>\n\n\n\n The USD\/JPY pair climbed to 146.06 from last week\u2019s close at 144.05, having touched a weekly low of 143.64 and a high of 146.21.<\/p>\n\n\n\n Sterling Slips Despite Steady Rates<\/strong><\/p>\n\n\n\n The Bank of England held interest rates steady at 4.25% in its June meeting, warning of recent contraction in Britain\u2019s economic growth.<\/p>\n\n\n\n The central bank flagged the potential for ongoing wage stagnation and voiced concerns over persistent uncertainty driven by the Middle East conflict.<\/p>\n\n\n\n Having shrunk 0.3% in April, the UK economy faces mounting downside risks, according to the bank. The Monetary Policy Committee also noted the possibility that wage growth may continue to weaken, which could influence consumer prices\u2014particularly in the U.S.<\/p>\n\n\n\n While the BoE kept rates unchanged by a 6\u20133 vote, markets now expect rate cuts in August and again in November.<\/p>\n\n\n\n Sterling fell on the week, dragged lower by a surging U.S. dollar and heightened geopolitical risk following Washington\u2019s involvement in strikes on what it claims are Iranian nuclear facilities. The GBP\/USD dipped to 1.3430, with an intraday low of 1.3382 and high of 1.3449.<\/p>\n\n\n\n When Will Safe-Haven Assets Peak?<\/strong><\/p>\n\n\n\n Despite the market pessimism sparked by Middle East tensions\u2014especially the resulting rallies in oil, gold, and the U.S. dollar\u2014history points to the eventual normalization of these trends.<\/p>\n\n\n\n Markets are expected to begin absorbing the shock soon, even with the U.S. now actively participating in Israeli-led strikes on Iran\u2014a scenario that could generate sharp, short-term spikes in some assets.<\/p>\n\n\n\n Safe-havens like gold and the dollar often benefit during the initial stages of geopolitical flare-ups, but tend to retreat over the medium and long term as anxiety subsides or investors adjust to prolonged uncertainty.<\/p>\n\n\n\n The dollar\u2019s dominance over gold may diminish in the coming week, especially if Middle East tensions escalate following Sunday night\u2019s U.S. airstrikes on alleged Iranian nuclear targets.<\/p>\n\n\n\n Meanwhile, the Swiss franc may see gains, whereas the yen could face continued pressure due to the BoJ\u2019s reluctance to raise interest rates.<\/p>\n\n\n\n President Donald Trump confirmed that U.S. forces carried out \u201chighly successful\u201d strikes on three Iranian nuclear sites, including the Fordow underground enrichment facility. His announcement came just days after stating he would decide within two weeks whether to join Israel\u2019s military action.<\/p>\n\n\n\n U.S. Defense Secretary Pete Hegseth hailed the strikes as \u201coverwhelmingly successful,\u201d noting they required months of preparation and coordination.<\/p>\n\n\n\n Looking Ahead<\/strong><\/p>\n\n\n\n The coming week is packed with high-stakes events that could shape global markets.<\/p>\n\n\n\n Chief among them is the U.S. joining Israel in its military campaign against Iran\u2014an action likely to dominate headlines. In addition, markets will be tuned into Federal Reserve Chair Jerome Powell\u2019s testimony on Tuesday and Wednesday, as investors search for any hint about the Fed\u2019s next move.<\/p>\n\n\n\n Key data releases will include U.S. consumer confidence, housing figures, and the Fed\u2019s preferred inflation metrics.<\/p>\n\n\n\n On the corporate front, Tesla will make waves with the launch of its \u201cRobotaxi\u201d self-driving ride service in Austin\u2014a move that has sparked controversy, particularly after U.S. lawmakers called for a delay until autonomous vehicle regulations are finalized.<\/p>\n","protected":false},"excerpt":{"rendered":" The S&P 500 declined by around 0.3%, while the Dow Jones Industrial Average inched up 0.09%. The tech-heavy Nasdaq 100 dropped 0.59%. U.S. equity indices gave up early-session gains in the week\u2019s final trading day, pressured by weakness in semiconductor stocks. The pullback came after The Wall Street Journal reported that a senior U.S. official …<\/p>\n","protected":false},"author":13,"featured_media":111914,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,6828],"tags":[],"class_list":["post-115713","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-weekly-economic-reports"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/115713","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=115713"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/115713\/revisions"}],"predecessor-version":[{"id":115714,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/115713\/revisions\/115714"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/111914"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=115713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=115713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=115713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}