High-flying U.S. equities could face turbulence as the corporate earnings season winds down. Investors grapple with rising inflation and bond yields.
The S&P 500 wobbled this week but remains near its all-time high, up over 9% for the year. It has posted eight straight weekly gains.
With earnings season largely over, macro factors take center stage. A bond market selloff has Wall Street on edge.
The 10-year Treasury yield hit its highest since January 2025, while the 30-year yield touched levels not seen since 2007.
Inflation worries and war-driven energy price spikes are pushing yields higher, creating headwinds for stocks.
The Federal Reserve may consider rate hikes as inflation persists. Futures markets now price in a potential hike by 2026.
This week brings the PCE price index, the Fed's preferred inflation gauge. Other data includes Q1 GDP and consumer confidence.
Key earnings reports from Costco, Salesforce, and Dell are ahead. Nvidia's strong results underscore robust AI spending trends.
