Teeing up the trading day with a top panel on the Fed, tech and impact of the war in Iran

• The Fed faces a dilemma with inflation, as energy price surges from the Iran war could have a lasting effect, making rate cuts in the second half of the year challenging.
• Corporate earnings are expected to remain resilient, driven by AI-led productivity gains, which are currently offsetting weaker hiring trends.
• Consumer confidence is a growing concern, with signs of weakening spending capacity, while financial advisors are making strategic shifts towards international equities and reducing energy exposure.

The panel discusses the Federal Reserve's challenge with persistent inflation, exacerbated by the Iran war's impact on energy prices. While corporate earnings and AI-driven productivity are providing some resilience, concerns about consumer confidence are rising. Financial advisors are adjusting portfolios by shifting towards international stocks and trimming energy positions.