Bitcoin extended its slide below $76,000 amid a broader retreat in risk assets, triggered by hotter-than-expected inflation data and a wave of long liquidations wiping out $182 million in positions. Bitcoin Depot filed for Chapter 11 bankruptcy. Anthropic is attempting to freeze secondary trading of its shares, creating counterparty risk for investors.

Market guru Ed Yardeni says the macro backdrop no longer supports an easing bias; he expects the FOMC to signal a tightening bias at the June meeting and a rate hike at the July meeting, with more hikes possible over the rest of the year. He maintains an 8250 year-end S&P 500 target based on strong earnings. Mike Wilson at Morgan Stanley believes stocks are at risk of a pullback as the bond sell-off threatens the tech rally; if longer-dated yields keep rising, they expect the first meaningful correction since late March. Higher rates are not expected to help the housing market rebound, though builder confidence is picking up marginally.

Home Depot earnings are expected tomorrow with a modest 4% revenue bump to $41.5 billion, but sticky housing headwinds are projected to pressure the bottom line with EPS dipping to $3.41. Home Depot is down almost 13% year-to-date.

Pending home sales data showed some encouraging signs, but the spring home buying rebound has not yet materialized. The labor market remains stable despite corporate layoffs, giving the Fed wiggle room to focus on inflation. The Fed could be on hold for longer, or as Yardeni suggests, could be hiking in the next two months.