Market Update: Trading One Source of Uncertainty for Another

What’s in Today’s Report:

• Market Update: Trading One Source of Uncertainty for Another
• Weekly Market Preview: Another Test for AI Enthusiasm (Micron Earnings on Wednesday)
• Weekly Economic Cheat Sheet: First Real Look at June Economic Growth This Week

Futures are slightly lower on digestion of Thursday’s rebound and some volatile (but not negative) geopolitical headlines over the weekend.

U.S./Iran headlines were volatile over the weekend but we ended it with the ceasefire still in place and negotiations on a nuclear deal ongoing (meeting market expectations).

Geopolitically, UK PM Starmer announced he will resign and that could put more upward pressure on global yields (which isn’t needed right now).

Today there are no economic reports and while Iran headlines will remain plentiful and likely conflicting, it should continue to fade as a market influence as neither side wants to escalate.

For today, that leaves a speech by the Fed’s Waller (9:00 a.m. ET) as the potential market moving event and if he comes out as hawkish or hints at possible rate hikes, that should put at least a mild headwind on stocks.