U.S. financial markets swung sharply this week as investors digested mixed signals from the macro environment.

A cooler-than-expected inflation print —- consumer prices rose just 0.1% in May and 2.4% year-over-year —- helped temper rate-hike fears and underpinned early-week gains. Strengthening this constructive tone were upbeat earnings from several large technology names, including Oracle. Momentum faded, however, when Israel’s strikes on Iranian nuclear sites spurred retaliatory drone attacks, sending oil to US$78 per barrel and pressuring global equities towards the end of the week.

Looking ahead, next week’s key event is the Federal Reserve’s June FOMC meeting. Consensus points to the policy rate being held at 4.25%–4.50%, as officials weigh lingering trade-policy uncertainty and the latest disinflation trend. Markets will parse the accompanying central bank statement and dot-plot for future direction of interest rates while also monitoring fresh macro releases —- Advance Retail Sales, Industrial Production, and Capacity Utilization —- for evidence on the durability of consumer demand and the trajectory of factory output.

Given this economic backdrop, let us see how this impacts the performance of various investment strategies.