Strait of Hormuz Tensions and Hawkish Fed Drive U.S. Stocks to Fourth Weekly Loss

Key Facts

U.S. equity markets declined for the fourth consecutive week as interest rates surged to their highest levels in eight months. The market faces significant pressure from the ongoing standoff in the Strait of Hormuz, a critical global energy chokepoint, amid escalating conflict with Iran. Simultaneously, the Federal Reserve delivered a "hawkish hold," signaling that further rate hikes may be necessary before the end of the year. These geopolitical tensions and monetary signals have revived inflation fears, pushing bond yields higher and weighing on risk assets. Investors are increasingly turning to the DXY and XAU/USD as safe havens while energy prices remain volatile. The combination of potential supply shocks and a "higher-for-longer" interest rate environment continues to dampen sentiment across major indices like the SPY.