US stock markets fixated on a Fed rate cut but what about geopolitics? Check out the Dow Jones

The slide in the USD/JPY and Nikkei 225 this morning seems to be against the grain of the recent recoveries seen in here in Europe and more dynamically in the US. The US stock markets are totally fixated with the prospect of a Fed rate cut next month. The odds of that would seem to make that prospect an almost done deal and perhaps it is. However, at the same time, the reasons for what took the stock markets lower at the start of the month have not exactly gone away. There is no doubting the decent earnings season in Q2, but at the same time the outlook for more of the same in Q3 seems predicated on remedial Fed action more than the reality of what that will deliver. So, the question now; is the rebound for US stocks near its end, or is there more to come. Geopolitical risks across the globe are at their most heightened for more than 50 years, but that has largely been ignored by the markets. The Dow Jones led the way for US stocks on Friday, but all three major indexes pretty much matched strides by the close. The Dow ended the week at 40,659, with a gain 96 points on the day. The index is just now priced to reopen at around 40,610