S&P 500 ends the week on the doorstep of a record

Good morning. With U.S. markets closed on Sunday, here is the week in review. Even with fighting in the Middle East flaring up again, the S&P 500 climbed to the doorstep of a record high. SK Hynix’s Nasdaq debut on Friday lit up chip trading, and that enthusiasm soaked up much of the Iran worry.

The Middle East is far from settled. President Trump declared the ceasefire with Iran over, and tanker traffic through the Strait of Hormuz has nearly ground to a halt. Oil still fell, on hopes the tensions won’t spread. Meanwhile, Iranian crude that Tehran ramped up is piling up at sea, with few buyers.

The Fed is facing a test too. Chair Kevin Warsh, heading to Congress for the first time since taking the job, is expected to face tough questions from lawmakers about how he sees the economy. Critics say his plan to hold fewer press conferences is bad for markets, and others warn the Fed could take back the rate cuts that steadied the economy.

Three things to watch next week: U.S. inflation data, which will hint at the Fed’s next move; the big banks, which open second-quarter earnings season; and Warsh’s testimony. It’s also worth noting that a gauge of tech-stock anxiety has shot up.