Stock mrkets may go in reverse this week At the moment, DOW...

Stock mrkets may go in reverse this week At the moment, DOW futures are in the red.

USstrikes escalate Israel-Iran conflict as geopolitics overshadow economics: Whatto know this week

Updated Sun 22 June 2025 at 9:35 pm AEST 6 min read

Stocks drifted lower last week as investors continued to digest the impacts of a growing conflict between Israel and Iran while closely watching how President Trump's tariffs could impact the US economy.

In the week ahead, geopolitics look set to dominate the conversation.

On Saturday, PresidentTrump said the US military struck three sites in Iran, marking the first entry of the US strike since the conflict escalated on June 13. In a speech at the White House on Saturday night, Trump suggested the US could take further action if "peace does not come quickly."

The ripple effects of the US' involvement in this broadening conflict will almost certainly set the tone for markets in the early going this week and likely overshadow the latest economic data and earnings reports set for release.

Last week, the S&P 500 (^GSPC) fell 0.15%, while the Nasdaq Composite (^IXIC) gained 0.2%. The Dow Jones Industrial Average (^DJI) finished the holiday-shortened trading week narrowly above the flat line.

A reading of the Fed's preferred inflation gauge will highlight economic releases in the upcoming week. Updates on activity in the manufacturing and services sectors, consumer confidence, and the final reading of first quarter economic growth are also expected. A two-day semiannual monetary policy testimony from Federal Reserve Chair Jerome Powell will also be in focus starting on Tuesday.