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Market Volatility: Stocks Flatten as Powell's Remarks Weigh on Gains

The stock market experienced a turbulent session on Wednesday, ultimately closing near flat after Federal Reserve Chair Jerome Powell's comments on monetary policy and inflation concerns. The S&P 500 ended nearly unchanged , giving back earlier gains as investors digested Powell’s remarks on the Fed’s stance regarding interest rates and economic restraint. Powell reiterated that the central bank remains cautious about inflation, particularly in light of tariff-driven price increases expected over the summer. While the Fed signaled that borrowing costs are likely to decline this year, the pace of future rate cuts appears to be slowing.  Following Powell’s speech, U.S. Treasury yields reversed their earlier declines , influencing market sentiment. The Dow Jones Industrial Average fell 43.83 points (0.10%) , while the Nasdaq Composite managed a slight gain of 23.66 points (0.12%).  Investors also kept a close eye on geopolitical developments, particularly tensions in the Midd...
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Saudi-Israel Normalization Remains Uncertain Amid Trump's Investment Push

As former U.S. President Donald Trump arrives in Riyadh, the prospect of Saudi-Israel normalization remains elusive despite his ambitious push for a $1-trillion investment deal. The ongoing war in Gaza has complicated diplomatic efforts, with Saudi Arabia insisting on an immediate ceasefire as a prerequisite for resuming normalization talks.

Trump’s Middle East envoy, Steve Witkoff, has expressed optimism about expanding the Abraham Accords, which previously facilitated diplomatic ties between Israel and several Arab nations. However, Israeli Prime Minister Benjamin Netanyahu’s reluctance to halt the war or support a Palestinian state has stalled progress on similar agreements with Riyadh.

Saudi Arabia, a key player in Middle Eastern geopolitics, does not formally recognize Israel. While normalization could enhance regional stability and counter Iran’s influence, the issue has become increasingly sensitive due to the Gaza conflict. Crown Prince Mohammed bin Salman has reportedly prioritized ending the war and establishing a credible path to Palestinian statehood before reconsidering normalization efforts.

For now, Trump’s visit is expected to focus on economic partnerships, including major arms deals, artificial intelligence projects, and infrastructure investments. His administration aims to secure a substantial financial commitment from Saudi Arabia, building on an initial $600-billion pledge. While diplomatic breakthroughs remain uncertain, the trip underscores Washington’s strategic interests in the region.

As the situation unfolds, the world watches to see whether economic incentives can pave the way for renewed diplomatic engagement between Saudi Arabia and Israel.

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