However, renewed US-Iran tensions kept investors cautious, supporting the US dollar, lifting Brent crude toward $90 per barrel, and maintaining safe-haven demand for gold despite short-term profit-taking. Markets also focused on Fed policy expectations, Kevin Warsh's first congressional testimony, and developments around the Strait of Hormuz, where disruptions continued to influence inflation expectations and energy markets.

Investor attention also shifted to broader structural themes beyond macroeconomics. The sustainability of heavy AI spending came under greater scrutiny as markets demanded stronger returns on massive investments in chips, data centers, and cloud infrastructure, while falling market volatility continued to support expectations for a potential summer equity rally. At the same time, US companies raised a record $252 billion through equity markets in the second quarter, driven largely by AI-related capital needs, signaling strong corporate financing activity but also increasing the supply of publicly traded shares. Looking ahead, markets will monitor the Iran conflict, major technology earnings, the ECB meeting, UK inflation, and key economic releases from Japan and Asia-Pacific for fresh direction.