RT Mr hunter (@TrueGemHunter)Instant market reactionBTC 3.3% drop in 15 min.That was just Trump's post.OIL already above $100JUST BY POST.Imagine if they really strike energy sectorsHow will OIL do $150, no $200 is a minimumStock market drop realistic -30% yes sounds impossible but it's not https://t.co/TyBlXLuGDt ...

Market Sentiment - Goldman Sachs CEO David Solomon expressed concern that there is not enough fear in the market regarding the ongoing crisis in the Middle East, indicating that the market's reaction has been surprisingly benign [1] - Solomon warned that the cumulative effects of current events may take weeks for investors to fully price in, suggesting a potential for a harsher market reaction in the future [1][6] Market Performance - Following the U.S. and Israel's actions in the Middle East, oil prices surged, global stock indexes declined, and the dollar strengthened as investors moved away from risk [2] - The S&P 500 index was down less than 1% for the week despite significant market volatility, indicating a somewhat contained damage [2] - On Monday, the Dow fell by 0.15% while the S&P 500 rose by 0.04%, but on Tuesday, the Dow dropped by 403 points and the S&P fell by 0.94%, reflecting a more honest market response [3] Volatility Indicators - The VIX, a measure of market volatility, closed at 23.57, its highest level since November 20, and reached an intraday high of 28.15, but decreased to 22.51 by Wednesday morning as traders speculated on potential diplomatic resolutions [4] Investment Trends - There has been a significant shift in investment preferences, with cash becoming the preferred asset as stocks, bonds, and gold have all been sold off together, leading to a notable inflow of $47.9 billion into global money market funds, the largest since February 17 [5] - According to market analysts, oil and the dollar are currently the only assets that investors are keen to hold [5] Economic Outlook - Solomon highlighted the macroeconomic backdrop as supportive, citing an easing cycle and a solid U.S. economy, but acknowledged the possibility of inflation running slightly higher than consensus expectations [6]

Follow along with live updates from October's Federal Reserve meeting. Get real-time analysis of Jerome Powell’s comments, market reaction, and what the Fed’s move means for inflation, jobs, and your money. https://t.co/lAIftzgdEQ ...

Market Sentiment - Investors perceive Donald Trump's threat to fire the Fed chair as a potential trial balloon to assess market response [1]

The 'Fast Money' traders talk market reaction to Fed Chair Powell's testimony. ...

Geopolitical Impact on Markets - The market initially reacted positively because the situation between Israel and Iran didn't worsen significantly over the weekend [2] - Markets generally don't react strongly to geopolitics, except for oil prices, which are closely monitored [2][3] - The market believes that as long as the US remains on the sidelines and oil prices stay relatively stable, the conflict's impact on stocks will be manageable [4] - US involvement would change the market's assessment [2][5] Market Drivers and Sentiment - The primary driver of the market is currently momentum, with a return to the momentum trade [6] - Equity markets assess geopolitical events based on their potential impact on companies' bottom lines [7] - The AI trade and mega-cap tech are currently not significantly affected by the geopolitical situation in the short term [8] Economic Concerns and Fed Policy - The economy is showing signs of a slowdown, which is a concern [11][12] - The Fed is unlikely to cut rates due to concerns about tariffs and potential higher oil prices [9][12][13] - The major risk is that the economy slows down while the Fed remains on the sidelines, potentially disrupting the momentum trade in the long run [13]