Tensions with Iran Weigh on Markets Ahead of Key Events

Geopolitical tensions between the US and Iran continue to weigh on global markets, limiting risk appetite ahead of key events. The US Consumer Price Index (CPI) report is expected to show a decline from 4.2% to 3.8%, largely in line with falling crude oil prices.

However, market expectations surrounding the implications of the recent escalation remain a primary driver of price action across major asset classes. Investors have flowed towards safe-haven assets like the US dollar and crude oil, while capping recoveries in equities, cryptocurrencies, precious metals, and currencies.

The Nasdaq continues to consolidate within a narrowing triangle pattern as investors await key catalysts this week, including earnings reports from AI chip manufacturers and broader technology sectors. The Federal Reserve's policy signals on Wednesday and forward guidance from upcoming US earnings reports will also dictate the next major move in equities.