US Stocks Plummet Amid Escalating Tensions with Iran

Last week saw a mostly softer inflation-related data globally, new government in the UK, and deteriorating relations between the USA and Iran.

The US CPI and PPI data fell, which relieved pressure on the Fed to hike rates. However, one rate hike of 0.25% later this year is still seen as probable.

The broad US stock market lost value, with the NASDAQ 100 Index touching a fresh 2-month low. This was likely due to fundamental factors and the prospect of an escalation in the US/Iran war.

Languages from the Federal Reserve remained hawkish, which could overpower any relief from this data.