Yardeni research highlights that amidst inflation risks and economic divergence, geopolitical crises have emerged as the major catalyst for market movements in 2025, surpassing traditional factors.

India-Pakistan Conflict Escalation

Recent military actions by India in Pakistan have triggered immediate global market responses, with investors moving towards safe havens like gold and defense stocks.

China’s Economic Struggles Amid U.S.-China Trade Talks

As negotiations resume, China faces internal pressures from workforce protests due to export declines driven by U.S. tariffs.