Bonds & Stocks
Stocks rose, with the S&P 500 increasing almost 1%, as hopes of a de-escalation of the Middle East conflict reduced inflation concerns. West Texas Intermediate slid about 5% to $65 a barrel as Israel and Iran appeared to be honoring a ceasefire agreement announced by President Trump.
Economy
Powell acknowledged that recent data supported a case for lower rates, but emphasized that the data was backward-looking, and many economists expect a meaningful increase in inflation over the course of this year due to tariffs. Powell’s remarks come on the heels of the Fed’s decision last week to leave interest rates unchanged in a range of 4.25%-4.5%.
World
Secretary General Mark Rutte is trying to prevent the NATO summit from getting out of control after President Trump questioned the US commitment to defend its allies. Trump's comments have caused concern among NATO officials, and some countries, such as Spain and Slovakia, are backing away from the 5% defense spending target, while Germany is embracing its security responsibilities.