SPY is trading 0.8% down today as investors react to a hotter-than-expected inflation report and escalating geopolitical tensions.
- April's CPI report showed 3.8% YoY inflation, beating analyst forecasts and significantly reducing expectations for Federal Reserve rate cuts.
- Escalating U.S.-Iran tensions are pushing oil prices higher, adding further downward pressure on equities amid broader market weakness.
- Investors are currently digesting the hawkish inflation signal, which suggests a higher-for-longer interest rate environment.