The week in the United States was marked by geopolitical tensions, mixed signals regarding economic activity, and developments on the technology front, all of which had a direct impact on market expectations and monetary policy.

Internationally, the focus was on the escalation between the United States and Iran. The Trump administration presented a fifteen-point peace plan that included the dismantling of Iran’s nuclear program, an end to uranium enrichment, and the reopening of the Strait of Hormuz. Tehran’s refusal heightened uncertainty, although the extension of the pause in attacks on energy infrastructure until April 6 was seen as an attempt to sustain dialogue. However, the market remains vigilant regarding the risk of military escalation, amid a strengthening of the U.S. presence in the region.

Meanwhile, on the political front, there were signs of détente with China after the rescheduling of the summit between Trump and Xi Jinping for May 14 and 15 in Beijing was confirmed. Domestically, the Senate approved funding for the Department of Homeland Security, which would help prevent disruptions to critical services such as air travel.