Geopolitical volatility and economic uncertainty dominated the hour. The regional conflict involving Iran and the U.S. expanded, fueling fresh concerns over trade routes and oil prices, while the Federal Reserve’s hawkish interest rate hold triggered a sharp rise in 30-year Treasury yields to 19-year highs. Against this backdrop, the corporate earnings cycle revealed a market increasingly intolerant of guidance misses. While companies like Microsoft, Cigna, and Hershey reported solid results and raised guidance—often citing AI-driven demand or operational efficiency—other heavyweights like Meta and Arm faced sell-offs despite strong performance, highlighting investor anxiety over spending and future growth. Meanwhile, broader policy initiatives, including the EU’s push for AI infrastructure and Japan’s proposed food tax cuts, provided additional signals amid a nervous, high-stakes market environment.