SPX: Highly overbought ahead of FOMCS&P 500SP:SPXXBTFXThe S&P 500 reached a fresh, new all time highest level at 7,163 on Friday, but struggled to hold gain, ultimately pulling back at the end of the trading day, as investor sentiment turned more cautious. The move was driven primarily by rising geopolitical tensions in the Middle East, particularly uncertainty around U.S.–Iran developments and the stability of the Strait of Hormuz, which pushed oil prices higher and reignited inflation concerns. From a macro perspective, elevated energy prices and fragile ceasefire conditions have increased market sensitivity to potential supply shocks, complicating the outlook for inflation and monetary policy. Performance within the S&P 500 this week was largely driven by a narrow group of sectors, with information technology and semiconductors clearly outperforming, supported by strong earnings and continued AI-driven demand. Investor inflows also favored technology, industrials, and financials, reflecting improving sentiment around growth and earnings resilience. On the downside, energy and communication services lagged, pressured by volatility in oil prices and broader geopolitical uncertainty, particularly related to tensions in the Middle East. Intel stock took the central attention of investors, with a sharp increase in price, after a significant earnings beat and upbeat forward guidance. Shares jumped more than 20–25%, reaching record highs, driven by stronger-than-expected revenue and accelerating demand for AI-related data center CPUs. The rally was further supported by robust growth in its data center segment and optimistic forecasts for the coming quarter, reinforcing investor confidence in Intel’s turnaround story. Despite recent record highs, the S&P 500 is facing short-term pressure as investors reassess risk exposure amid an increasingly uncertain geopolitical backdrop. Also the next week brings FOMC meeting and Feds interest rate decision, which will add to the level of nervousness among investors. Some precaution with optimism should be advisable.