Markets Pivot from AI Momentum to Geopolitical Risks and Hawkish Fed Signals

Financial markets are undergoing a significant transition as the initial enthusiasm for artificial intelligence begins to cool, giving way to macroeconomic and geopolitical concerns. Recent Federal Reserve meeting minutes have unexpectedly reintroduced the possibility of interest rate hikes, unsettling investors who anticipated a more dovish path. Adding to the uncertainty, the Trump administration's escalating rhetoric regarding Iran is emerging as a primary driver of market volatility. Internal tensions are also rising as the New York Fed's research on tariffs draws criticism from government officials, further complicating the economic outlook. Meanwhile, individual stocks like Carvana are facing pressure following disappointing forward-looking guidance that failed to meet investor expectations. These combined factors are shifting focus toward safe-haven assets such as Gold and the US Dollar while weighing heavily on major equity indices.