Wall Street rides high into June on hopes that the war will soon come to an end. Here’s what’s ahead The stock market is reaching all-time highs, fueled by optimism that the conflict with Iran will resolve soon, leading to the reopening of the Strait of Hormuz. Artificial intelligence continues to be a primary market driver, with strong profit growth reported across various sectors, particularly in information technology. However, potential challenges include faltering consumer spending due to inflation and savings rate drops, and historically, June is a weak month for stocks in midterm election years.

• Stock market reached all-time highs in May, anticipating a resolution to the Iran conflict and reopening of the Strait of Hormuz.
• Artificial intelligence is a major market driver, with significant profit growth reported in the first quarter, especially in information technology.
• Consumer spending may be constrained due to elevated inflation and a drop in the U.S. savings rate.
• June is historically the worst month for stocks in a midterm election year, suggesting a potential for short-term consolidation.
• Upcoming economic reports include nonfarm payrolls, PMI, and ISM Manufacturing/Services data.