Markets Steady Amid Israel-Iran Tensions, Fed Uncertainty

U.S. stock markets have remained stable despite escalating Israel-Iran tensions and ahead of the Federal Reserve’s interest rate decision. The Fed is expected to keep rates unchanged, but futures markets assign about a 64% probability to a rate cut by September, with officials signaling any cuts will be gradual due to ongoing inflation and geopolitical risks. Oil prices have risen amid the Middle East conflict, but analysts believe broader market impacts will be limited unless oil exceeds $90 per barrel. Global markets are cautious, with Asian indices and India's Sensex opening lower, and the U.S. dollar holding steady as a safe haven. Recent U.S. economic data show slowing housing starts and persistent inflation, contributing to investor uncertainty. Market participants are balancing hopes for Fed easing, corporate earnings, and risks from geopolitical events and potential tariffs.