US markets declined over the week as an escalating military conflict between the US and Iran weighed on investor confidence. The S&P 500 fell 0.6% for the week, with losses concentrated in consumer discretionary and communication services names, while a brief mid-week rebound in chipmakers provided only partial relief. Treasury yields rose across the curve, driven by surging oil prices that rekindled inflation fears and prompted markets to reassess the likelihood of near-term Federal Reserve rate hikes. Gold rose 1.3%, supported by safe-haven demand amid geopolitical uncertainty. The University of Michigan’s preliminary consumer sentiment index rose to 54.4 in July from 49.5 in June, as lower gasoline prices boosted household morale. That tailwind may be fading as energy prices have since reversed higher. The S&P Global US Manufacturing PMI for July came in at 53.8, slightly below the prior reading of 53.9, suggesting while manufacturing activity continues to expand, momentum may be softening at the margin.