Geopolitical tensions and sector rotations made this week’s U-S trading choppy, yet macro data struck a steadier note.

May’s Consumer Price Index advanced just 0.1 percent month-over-month, easing inflation worries, while the Federal Reserve left policy rates unchanged at the June FOMC meeting amid growing expectations — per FedWatch probabilities — of potential cuts before year-end. Labor conditions remained firm as job creation held up and the headline unemployment rate hovered near 4.2 percent, reinforcing views that the economy is slowing only gradually.

Looking ahead, markets enter the new week on a guarded footing as the Israel–Iran conflict keeps crude prices close to $77 per barrel. Investors’ focus will sharpen on Federal Reserve Chair Powell’s testimony before the House Financial Services Committee, where guidance could clarify whether the two rate cuts currently expected by the markets for 2025 might be pared to one. Additional context will come from the Fed’s preferred inflation gauge — Core PCE — and from high-profile earnings releases at FedEx, Micron, Nike and General Mills, each offering a window into freight demand, semiconductor supply chains, consumer spending and packaged-food pricing power.

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