Equities experienced a downturn as geopolitical tensions surrounding Iran and the United States escalated, impacting investor confidence. Despite concerns, US inflation data aligned with forecasts, suggesting a potential pause in interest rate hikes by the Federal Reserve. Oil prices rose sharply in response to the heightened tensions in the Middle East, fueling concerns about potential supply disruptions. Market analysts suggest the current volatility reflects a delicate balance between economic indicators and global political risks. Traders are currently pricing in expectations of the Federal Reserve maintaining its current interest rate policy. The combination of these factors created a risk-off sentiment, leading to selling pressure in the stock market. The situation remains fluid and subject to change based on further developments in both geopolitical and economic spheres.