LOOKING AHEAD...

Expect news from Israel and the Gaza Strip to be big in the headlines and impact the markets in the coming days and weeks. The economic schedule in the U.S. will be relatively light. On Wednesday, the Building Permits and Housing Starts data will probably show a decline due to higher rates and energy costs.

Consumer Inflation Remains High

Yesterday, the Consumer Price Index (CPI) showed that inflation remains worrisome. The biggest factors driving up prices were housing and energy expenses. If energy costs keep going up in the next few weeks, it might force the Federal Reserve to rethink raising interest rates..

In summary, It is essential to brace ourselves for the possibility of experiencing elevated levels of volatility in the financial markets due to the continuous emergence of significant news developments in the Middle East. Moreover, this heightened uncertainty is further compounded by the looming threat of increased oil prices, which is expected to have significant ramifications on both global and domestic economies. As such, investors and market participants should remain vigilant, closely monitoring unfolding events, and adapt their strategies accordingly to navigate these tumultuous conditions.