Markets Await Iranian Response
June 23, 2025
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Following the U.S. strikes on three of Iran’s nuclear facilities over the weekend, financial markets have yet to reflect any signs of stress or a flight to safety. Equity market futures indicate little change in valuations from Friday’s close,1 while Treasury yields are modestly lower.2 Oil prices spiked on news of the attack over the weekend but have given back nearly all the gains.3
This week’s economic release calendar starts with the S&P Global U.S. Purchasing Managers’ Index (PMI) and existing home sales data, both out today.4 Additional housing market updates include new home sales, scheduled for Wednesday.5 High mortgage rates and challenging affordability measures continue to be a headwind for the housing market.
The Federal Reserve’s (Fed) inflation gauge of choice, personal consumption expenditures (PCE), will be released Friday with economists expecting a 0.1% reading for both headline and core inflation.6 On a year-over-year basis, PCE is expected to tick higher but remain very close to the Fed’s 2% target.7
Sources:
1,3CNBC – Stock futures are flat as traders monitor oil prices, Iran response to U.S. bombing: Live updates; 6/23/25
2CNBC – U.S. Treasury Yields; as of 6/23/25
4-7MarketWatch – U.S. Economic Calendar; as of 6/23/25
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