Rising inflation and oil supply shocks typically strengthen the USD (DXY) as a safe haven and due to potential Fed tightening.
metals
Inflation and geopolitical tensions (Iran war) typically drive demand for precious metals as a hedge.
ndx
Inflation and oil shocks create headwinds for tech/growth stocks (NDX) due to potential rate hikes and higher discount rates, though smartphone price drop is a positive signal.
rut
Rising inflation driven by oil shocks and tariffs negatively impacts small-cap companies (RUT) more due to higher input costs and consumer spending pressure, though no explicit mention.
wti
oil shocks from the conflict in the Middle East are a major factor; Energy prices are up around 18% over the past year; gas is up more than 28%
Rising inflation (CPI at 3.8%, core at 2.8%) moving away from Fed's 2% target typically leads to expectations of tighter monetary policy, pushing yields higher.
April CPI shows inflation rising as the Iran war creates oil supply shocks; month-over-month inflation was 0.6% in April after 0.9% in March, similar to 2022 levels.
Unnamed Reporter
Annual inflation hit 3.8% in April, core inflation (excluding food and energy) hit 2.8%, moving away from the Fed's 2% target.
Unnamed Reporter
Oil shocks from the Middle East conflict are a major factor; energy prices up 18% over the past year, gas up more than 28%.
Unnamed Reporter
Airfares increased almost 21% due to fuel prices; airlines directly tied fare increases to fuel costs.
Unnamed Reporter
Food prices up more than 3% overall, fruit and vegetable prices up just over 6%, tomatoes up almost 40% due to tariffs on imports.
Unnamed Reporter
Some good news: smartphone prices down more than 12% from April 2025, used cars and trucks down over 2%.