U.S. equities continue to reach record highs despite disruption in the Strait of Hormuz, as resilient AI-driven growth offsets the economic drag from supply-chain and energy shocks, leaving inflation pressures and rising bond yields as the primary risks to the constructive market outlook.

Markets this week will be driven by a heavy mix of geopolitical developments, central bank commentary, and key inflation and growth data, as investors navigate rising stagflation risks, shifting Fed expectations, and ongoing geopolitical tensions impacting global energy markets.