Global inflation is now projected to hit 3.9% for the year, a jump that economists warn will hit developing nations the hardest as the cost of imported goods and energy erodes real income. While the U.S. economy is holding at a forecasted 2% growth rate, the U.N. report warns that European nations are dangerously exposed due to their heavy reliance on imported energy, driving their regional growth down to a measly 1.1%.
Even with the S&P 500 coming off a record-breaking April, traders are now obsessively watching Nvidia’s earnings release today as the ultimate test for the current tech-fueled market rally. The VIX volatility index has been drifting toward 18.00 as investors try to reconcile the disconnect between massive corporate earnings and the reality of rising interest rates and geopolitical instability in the Strait of Hormuz.
Treasury yields just climbed back up to levels not seen since early 2025, throwing a massive wrench into equity valuations and forcing investors to rethink their entire strategy. As borrowing costs for companies and consumers spike, the stock market is feeling the squeeze, especially in the small-cap and tech-heavy sectors that have been riding high on a wave of easy-money expectations.