SPY is trading 0.6% down today following April CPI data that came in at 3.8% YoY, exceeding forecasts and dampening expectations for Federal Reserve rate cuts.
- The hotter-than-expected inflation report is weighing on broader market sentiment as investors recalibrate the timing of potential monetary easing.
- Geopolitical tensions in the Middle East, including risks to the Strait of Hormuz and ceasefire warnings, are driving oil prices higher and adding further pressure to equities.