US stock markets are closed but futures are near the lows of the week

Jerome Powell didn’t offer any help to the stock market on Wednesday as he highlighted the potential for tariff inflation and indicated the Fed was in no rush to cut rates. That mostly aligned with market expectations but the bulls would have liked to hear something that sounded more like a Fed put.

In any case, the Middle East has been the driver of markets all week and the uncertainty is weighing. There is starting to be a sense that US talking points are contrived or meant to distract from a buildup of military hardware and preparations in the region. The result could be an overwhelming use of US air power, something Trump has hinted at.

From there, no one knows where the war goes and that has markets on edge. S&P 500 futures are down 36 points, which is near Friday’s low and the lows of the past two weeks. There is a sense that something could happen on the weekend and that could (should?) make stock buyers leery.

This article was written by Adam Button at www.forexlive.com.