Markets Juggle Hormuz Risk, Hawkish Fed and AI Boom

Global markets are being pulled by three big stories.

Fighting around the Strait of Hormuz has made oil more expensive and unpredictable.

The United States says it attacked Iranian launchers that could have placed mines in shipping routes, while Iran says the strait remains closed.

The new Federal Reserve chair also warned that inflation is still a problem, which could mean higher interest rates for longer.

Higher rates can make stocks less attractive, but gold is still popular as a safety asset.

At the same time, NVIDIA reported very strong growth because companies are spending heavily on artificial intelligence.

This helped technology shares, although high bond yields limit how much stock prices can rise.

India is especially sensitive because it imports a large amount of oil and is dealing with weak overall rainfall.

Analysts therefore favor carefully chosen Indian companies, especially those able to protect their profit margins.