Wall Street Eyes Middle East Tensions and ETF Outflows as Quarter Closes

Middle East Rhetoric Spurs Asian Gains

President Trump warned that Iran would be “living in Hell” by Tuesday if a deadline on the Strait of Hormuz is missed. The statement sent investors scrambling for safe‑haven assets, but Asian equities rallied. Japan’s Nikkei and South Korea’s KOSPI opened higher as traders weighed the extended deadline and the possibility of a de‑escalation.

ETF Inflows Hit Nine‑Month Low

Strategas Securities’ Todd Sohn noted that equity ETF inflows fell to their lowest level in nine months during the first quarter. The slowdown reflects lingering uncertainty over monetary policy and geopolitical risk, prompting a shift toward cash and short‑duration bonds.

Quarter‑End Moves on the NYSE

The NYSE saw a pronounced uptick on the final trading day of the quarter, fueled by profit‑taking and speculation that Trump may seek a diplomatic exit from the Hormuz crisis. Analysts view the rally as a temporary off‑ramp, with market direction for the next week hinging on further developments in the Middle East and the Federal Reserve’s policy stance.