Fortune and Gloom! Stocks Tumble as Israel-Iran Tensions Rise, Fed Meeting Looms!

Snakes! Why Did It Have To Be Snakes... And Stock Drops?

Well hello there! It's your favorite archaeologist Indiana Jones back from dodging booby traps and ancient curses to bring you the latest from the economic front. Seems even the stock market can't outrun a good old fashioned geopolitical dust up. This week the ongoing tensions between Israel and Iran sent the markets into a bit of a tailspin. You know like when you're trying to grab a golden idol and the whole temple starts to collapse. The Dow took a beating losing more than 750 points faster than you can say 'Fortune and glory kid. Fortune and glory.'

Risk Off! Risk Off! I Hate These Guys!

As the situation in the Middle East heated up investors did what they always do when things get dicey: they ran for the hills or in this case 'risk off' assets. Oil prices spiked – naturally because who doesn't love a good oil crisis? – and defense stocks rallied. Seems like the only ones making money these days are the ones selling the shovels during a gold rush... or you know missiles during a conflict. Meanwhile poor old semiconductor stocks which were riding high just days ago took a tumble. Even Nvidia the darling of the tech world couldn't escape the gravity of the situation. It appears that volatility is back on the menu folks!

The Fed's Crystal Skull: What Does Powell See?

But wait there's more! As if dodging Iranian missiles wasn't enough we've also got the Federal Reserve meeting next week. Everyone expects them to hold rates steady but the real question is: what's Jerome Powell got up his sleeve? Will he drop some truth bombs about the economy or will he stick to the usual 'data dependent' mantra? It's like trying to decipher the markings on an ancient artifact – you know there's something important there but figuring it out is a whole different ballgame.

Dovish or Hawkish? I'm More of an Owl Person Myself

Some analysts are whispering that Powell might strike a slightly more dovish tone especially with the labor market showing a few cracks. 'Dovish,' for those of you who haven't spent your lives deciphering economic jargon means they might be thinking about cutting rates sooner rather than later. Others like David Kelly over at J.P. Morgan Asset Management think the Fed might only cut rates once this year. It's all a big guessing game really like trying to predict which way the snakes will slither in that pit of vipers. You just have to keep your wits about you and hope for the best.

Juneteenth Holiday: Even the Market Needs a Break From Nazis... and Rate Hikes

And speaking of breaks next week is a shortened trading week thanks to the Juneteenth holiday. Even the stock market needs a day off to celebrate freedom apparently. I'm all for it. A day off to relax and contemplate the mysteries of the universe... or maybe just polish my fedora. Who knows what treasures we'll uncover when the markets reopen?

Market Calendar: Maps To Future Treasures or Fool's Gold?

So what's on the docket for the week ahead? We've got the Empire State Index Export and Import Price Indexes Retail Sales Housing Starts... the list goes on. It's enough to make your head spin faster than a boulder chasing you down a hallway. But fear not intrepid investors! With a little luck a lot of caffeine and maybe a map or two we'll navigate these treacherous waters and come out on top. After all as I always say 'It's not the years honey it's the mileage.' And this market? It's got plenty of mileage left in it.