Global Markets Uncertain Amid Geopolitical Tensions

The stock market is expected to remain uncertain next week as investors monitor the escalating Iran-Israel conflict, the Federal Reserve's next move, and ongoing trade uncertainty. The S&P 500 is near an all-time high but remains more than 2% off its February peak. Investors are cautious, with some expecting a continued stock comeback due to the strength of the underlying market, while others point to signs of weakening economic data. Key events next week include the release of the personal consumption expenditures price index, earnings reports from FedEx, Nike, and Micron, and various economic indicators such as PMI and existing home sales. Despite challenges, some investors remain confident that the S&P 500 can reach 6,500 or 6,600 by the end of the year.

European stocks ended the week lower as investors focused on the escalating conflict between Israel and Iran. The Stoxx Europe 600 index was up 0.1% on Friday but lost 1.5% for the week. Germany's DAX and France's CAC 40 also ended the week down, despite positive closes on Friday. The U.K.'s FTSE 100 closed down on Friday and lost value for the week. Some individual stocks, such as Eutelsat, saw significant gains after announcing a capital raise backed by the French state. The week's losses were attributed to geopolitical tensions and uncertainty around central bank actions.

The S&P 500 was modestly lower on Friday as investors considered the latest news from the Israel-Iran conflict and the Federal Reserve's next monetary policy move. Home Depot is reportedly eyeing a deal to acquire GMS Inc., a building products distributor, sparking a potential bidding war with QXO, which has made a $5 billion cash proposal. Darden Restaurants' fourth-quarter earnings report showed that consumers are still willing to spend on casual dining, with same-store sales rising 6.9% and 6.7% at Olive Garden and LongHorn Steakhouse, respectively, boding well for Texas Roadhouse. The TikTok ban was delayed once more, with the deadline for ByteDance to divest the app's US operations now set for September 17, a development that could potentially benefit Meta if the ban were to happen, though it is not expected to.

The S&P 500 and Nasdaq Composite fell on Friday, with the S&P 500 declining 0.22% to 5,967.84 and the Nasdaq dropping 0.51% to 19,447.41. The Dow Jones Industrial Average rose 0.08% to 42,206.82. Chip stocks were under pressure after a report that the US may revoke waivers for some semiconductor manufacturers. For the week, the S&P 500 was down 0.2%, while the Dow gained 0.02% and the Nasdaq advanced 0.2%. Thirteen S&P 500 stocks hit new 52-week highs on Friday.

Stock futures were lower ahead of Friday's session as investors monitored the escalating conflict between Iran and Israel, with the possibility of direct US involvement. Futures tied to the Dow Jones Industrial Average slipped 70 points, or 0.15%, while S&P 500 futures fell 0.11%. The conflict and uncertainty around US involvement have caused crude oil prices to climb 3%. Investors are also weighing comments from Federal Reserve Chair Jerome Powell, who indicated the Fed will remain data-dependent and not rush to cut interest rates. The S&P 500 is up 0.07% for the week, while the Dow has lost 0.06% and the Nasdaq has advanced about 1%.