Markets navigated another week shaped by geopolitics, inflation concerns, and shifting expectations for monetary policy. Renewed tensions between the United States and Iran contributed to higher oil prices and raised concerns that the recent improvement in inflation trends could face new headwinds.

Markets began the second half of the year on a positive note as investors looked beyond softer labor market data and focused instead on the growing possibility that the Federal Reserve could begin adopting a less restrictive policy stance later this year.