Market Mondays: Peace deal reshapes the outlook ahead of FOMC meeting

News of a US-Iran peace deal and the reopening of the Strait of Hormuz has shifted market sentiment positively ahead of major central bank meetings, including the Federal Reserve’s first gathering under chair Kevin Warsh. While oil prices have declined, underlying inflation pressures persist from strong economic activity, labor markets, and AI infrastructure investment, leaving central banks to balance inflation risks against growth concerns.