Wall Street saw a bumpy day as stock futures dropped ahead of a major $6.5 trillion trading event. The S&P 500 struggled to hold its recent gains, with big tech stocks taking a hit. Investors are nervous about rising tensions in the Middle East, especially after news that President Trump delayed a possible strike on Iran to focus on diplomacy with Israel for the next two weeks.
This caused oil prices to swing, pulling back from a high above $77 a barrel.
Trade concerns are also weighing on markets. Talks about new tariffs are making companies rethink their supply chains, as they did during past trade disputes and the pandemic. Businesses are bracing for higher costs, which could hit consumers too. The Federal Reserve’s cautious stance isn’t helping—Chair Jerome Powell warned that inflation might climb in 2025, limiting room for rate cuts.
Some Fed members even predict no cuts at all next year.
On the economic front, unemployment for young graduates is at its highest in a decade, sitting at 6.6% for those aged 20-24 with bachelor’s degrees. Meanwhile, artificial intelligence remains a bright spot, with analysts now saying 2026 could see even bigger AI investments than 2025, potentially boosting the economy by over 1% of GDP.
Markets are on edge, but some see hope in upcoming U.S.-China trade talks. Investors are watching closely, knowing that global events and policy shifts could keep shaking things up.
World News
Stocks dip as global tensions and trade fears grow

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