While U.S. stock and bond markets paused trading today for the Memorial Day holiday, global investors are heading into the shortened week with a strong dose of optimism. Ahead of the long weekend, the S&P 500 notched its eighth consecutive weekly gain—closing at an impressive 7,473.47—while the Dow hit a fresh record high. The primary driver behind this persistent "risk-on" tone is brewing optimism over a potential U.S.–Iran diplomatic agreement, which has successfully cooled down fears of skyrocketing oil prices and shipping disruptions in the Strait of Hormuz. However, the optimism is heavily balanced by a hawk-eyed focus on the Federal Reserve. With Fed Governor Waller advocating to pull back on "easing bias" and new Fed Chair Kevin Warsh officially taking office, the narrative is shifting fast toward higher-for-longer interest rates. Keep a close eye on the upcoming U.S. GDP data later this week; it is going to be the ultimate litmus test for whether this epic market rally can sustain its momentum. 📊 #FinanceNews #StockMarket #MacroEconomics #FederalReserve #Investing