{"id":74809,"date":"2025-06-22T00:50:41","date_gmt":"2025-06-22T07:50:41","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=74809"},"modified":"2025-06-22T00:57:27","modified_gmt":"2025-06-22T07:57:27","slug":"a-nervous-calm-in-the-stock-market-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2025\/06\/22\/a-nervous-calm-in-the-stock-market-the-market-breadth\/","title":{"rendered":"A Nervous Calm in the Stock Market – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary<\/strong><\/h2>\n\n\n\n

The stock market last week was full of a nervous calm. Fed Chair Jerome Powell seemed to muffle the market’s mood after warning that meaningful inflation is yet to come<\/a> as a result of tariffs. The expiration of the 90-day pause on reciprocal tariffs<\/a> looms over the market with just one major deal on the books (the U.K. deal was recently confirmed but it seems incomplete<\/a>) and a likely extension of the pause. Moreover, almost every week the news drops small trade war headlines that the market has learned to ignore given the sharp rebound from March and April’s tariff drama, trauma, and noise. For example, on Friday the U.S. reportedly may go after the semiconductor plants that its allies have in China<\/a>. These reports and headlines now mean little unless and until something specific materializes…while the tariff pause remains in effect anyway.<\/p>\n\n\n\n

More importantly, the week ended with the President announcing a 2-week pause on making a decision on bombing Iran’s nuclear facilities. That pause added to the nervous calm. The very next day, at the time of writing, the U.S. proceeded with a bombing run on Iran<\/a> with plenty of weekend time for financial markets to avoid panicking. If Iran chooses the path of escalation instead of the “surrender” that the U.S. wants, all bets are off.<\/p>\n\n\n\n

If the Iranian conflict escalates, I will place the war in the context of an expansion of what I still see as an unfolding World War Three. While the surface area of this war remains far more limited than the first two world wars, the participants are almost just as global in scope. Perhaps the perspective and hindsight of history will connect the dots and recognize the pouring of resources and weaponry from major powers to fight other major powers as a world war. Regardless, thank goodness the damage has not been global in scope.<\/p>\n\n\n\n