Expectations for the stock market opening focus on geopolitical tensions and economic factors affecting investor sentiment.

The Iran-Israel conflict and equity markets are now in sharp focus. As direct strikes escalated in June 2025, global financial markets responded immediately.

The Israeli shekel suffered widespread selling on Friday along with some government bonds and equity markets across the Middle East after Israel launched missile strikes against Iran.

The Federal Reserve will release its June rate decision on Wednesday, with the market expecting the central bank to hold interest rates steady. Bank of America Securities senior US economist Stephen Juneau and Ritholtz Wealth Management chief market strategist Callie Cox join Morning Brief to discuss their expectations for the Fed meeting as geopolitical tensions in the Middle East rise.

As tensions in the Middle East escalate to a dangerous new chapter, concerns are arising as to how developments could affect the Malaysian economy and stock market performance, albeit indirectly in all likelihood.

If the middle east conflict remains restricted, or even subside, one could see the market impact wear off, said Chirag Mehta, the CIO at Quantum AMC. However, the markets are at risk of a correction as valuations have been cooled off,