Stock Market Today: Markets Rally Ahead of Fed Decision as Middle East Tensions Simmer

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#title#Stock Market Today: Markets Rally Ahead of Fed Decision as Middle East Tensions Simmer

Market Outlook

“The market just seems very keen to fade geopolitical risk,” Zachary Hill, head of portfolio management at Horizon Investments, told CNBC. “That has been historically the right thing to do, so I think that’s kind of what’s driving us so far today.”

Investors continue to monitor the AI theme, with Alphabet (GOOGL), Microsoft, and Nvidia showing the strongest exposure to artificial intelligence among the Magnificent Seven stocks, according to analyst ratings. Despite recent volatility, the Magnificent Seven as a group have returned 33% since the market hit its 2025 low in early April.

As the trading day progresses, market participants remain focused on the Fed’s decision and any signals about the future path of interest rates, while keeping a cautious eye on developments in the Middle East that could quickly shift market sentiment.

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