Tariff Uncertainty Clouds Market Outlook, Geopolitical Risks Back Crude Rally

• December factory orders missed expectations, contracting by 0.7%, but are not seen as a major market mover.
• Tariffs and geopolitical risks, particularly involving Iran and the US, are creating significant market uncertainty and are expected to drive continued volatility.
• Crude oil prices are rallying due to geopolitical risks (Strait of Hormuz) and positive fundamental factors like lower inventory levels and the transition to summer blend gasoline.

The market outlook is clouded by tariff uncertainty and geopolitical risks, despite mixed factory orders data. Volatility is expected to remain elevated, with crude oil prices rising due to supply concerns and seasonal demand shifts. Investors are advised to remain cautious as trade tensions and global events continue to influence market direction.