US Equity Investors to Await Iran's Response to Bombings, Powell's Congress Testimony Ahead of Fed's Preferred Inflation Data

06:10 AM EDT, 06/23/2025 (MT Newswires) -- US equity investors will focus on the impact of the bombing of Iran's nuclear facilities and Federal Reserve Chair Jerome Powell's testimony before the Congress ahead of the central bank's preferred inflation data this week.

* President Donald Trump warned Iran of a far greater US response if it retaliates, Bloomberg reported. Iran's parliament voted to authorize a potential closure of the Strait of Hormuz, which reportedly handles more than 20% of global oil shipments. Iran's Foreign Minister Abbas Araghchi said Sunday that he plans to travel to Moscow on the same day to meet Russian President Vladimir Putin.

* "Markets will remain sensitive to the news flow as they assess if, or the extent to which, the US will continue to engage directly in the region," a Westpac Group note said early Monday.

* The "US strike was a matter of when, not if" and it "ultimately removes an overhang on the market," Wedbush Securities said in a Sunday note.

* Powell will lay out the Fed's views on inflation and the economy, setting the stage for discussing the path for potential policy easing. Powell will testify before the House Financial Services and the Senate Banking committees.

* "He may be asked about whether July is a 'live' meeting that could deliver a cut," a Scotiabank note said Friday. However, Fed "Governor Waller recently sounded open to a July cut, dismissive of inflation effects from tariffs, and (perhaps) prematurely declared there is no tariff effect showing up in inflation data."

* "While Governor is a respected official, it merits noting that his dovish stance is compatible with President Trump's views and that the President must choose a successor to Powell before the Chair's term is up next May," the Scotiabank note said.

* Data due this week includes personal consumption expenditures, purchasing managers' index, and the final read for Q1 gross domestic product.

* FedEx (FDX) , Nike (NKE) , Carnival (CCL), and Micron Technology (MU) will report earnings later this week.

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