Investors juggle geopolitical stress with cautious optimism ahead of Powell testimony
June 23, 2025 | New York, NY — Wall Street opened cautiously on Monday morning as investors navigated through mounting geopolitical risks following U.S. airstrikes on Iranian nuclear sites over the weekend.
The Dow Jones Industrial Average dropped 28.3 points (–0.07%) to 42,178.6, while the S&P 500 inched up 0.03%, and the Nasdaq Composite dipped 0.10%, showing markets are still assessing the broader implications of renewed Middle East conflict.
Focus: Oil and Fed Outlook
The airstrikes triggered immediate concerns over oil supply disruptions, though crude prices remained relatively stable thanks to surplus OPEC+ capacity. However, analysts warn the situation could add fuel to inflation just as the Federal Reserve prepares for a critical policy review.
All eyes now turn to Fed Chairman Jerome Powell, who is scheduled to testify before Congress on Friday. Investors are hoping for clarity on whether rising geopolitical uncertainty could delay further interest rate cuts.
“Markets are trying to thread the needle between geopolitical shock and economic resilience,” said Emily Hayes, a senior economist at Bay Street Capital.
Sector Highlights
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Energy stocks rose modestly as crude hovered near $74/barrel.
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Defense contractors like Raytheon and Lockheed Martin gained nearly 1.2% at open.
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Tech shares cooled slightly after last week’s rally, reflecting risk-off sentiment.
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Bottom Line
While the market isn’t panicking, cautious trading shows investors are keeping a close eye on potential fallout—from both Iran’s response and upcoming Fed moves.