The US stock index has now stabilized after the collapse in the stock prices of the tech giants caused severe turmoil in the market. Although traders tend to turn a blind eye to the escalation of the geopolitical situation, the rising probability that the Fed will raise interest rates has become a focus they cannot ignore. As Spectra's Brent Donnelly said, the stock market is currently being hit by multiple adverse factors. Another escalation of the situation in Iran, as well as the impending tariff crisis, have further heightened market concerns about inflation and reignited risk expectations of monetary policy tightening. Although thanks to good corporate profit performance and President Trump's consistent policy tendencies, traders may be more inclined to wait for further clarification of the geopolitical situation; at a time of sharp market fluctuations, the risk of the Federal Reserve adopting a stricter monetary policy is rising, which may put further downward pressure on the stock market.

The US stock index has now stabilized after the collapse in the stock prices of the tech giants caused severe turmoil in the market. Although traders tend to turn a blind eye to the escalation of the geopolitical situation, the rising probability that the Fed will raise interest rates has become a focus they cannot ignore. As Spectra's Brent Donnelly said, the stock market is currently being hit by multiple adverse factors. Another escalation of the situation in Iran, as well as the impending tariff crisis, have further heightened market concerns about inflation and reignited risk expectations of monetary policy tightening. Although thanks to good corporate profit performance and President Trump's consistent policy tendencies, traders may be more inclined to wait for further clarification of the geopolitical situation; at a time of sharp market fluctuations, the risk of the Federal Reserve adopting a stricter monetary policy is rising, which may put further downward pressure on the stock market.