Market Uncertainty Looms Amid Middle East Conflict and Fed Decisions

U.S. stock markets experienced fluctuations as the fifth day of the Israel-Iran conflict impacted global investor confidence. The conflict has heightened concerns about potential disruptions in Middle Eastern oil exports, exerting pressure on major indexes ahead of the Federal Reserve's anticipated monetary policy announcement.

Energy stocks benefited from elevated oil prices amid the uncertainty, with U.S. giants Chevron and Exxon witnessing gains. Meanwhile, the proposed phase-out of solar tax credits sent solar stocks tumbling, impacting companies such as Enphase Energy and Sunrun significantly.

The Federal Reserve is widely expected to leave interest rates unchanged, with traders predicting possible rate cuts by 2025. Amidst this economic backdrop, traditional safe-haven assets attracted investors, leading to falls in Treasury yields, while both megacap and growth stocks such as Tesla and Alphabet saw losses.

(With inputs from agencies.)