Most major U.S. stock indexes finished the week lower as optimism surrounding large-cap technology and AI-related stocks was largely outweighed by concerns around accelerating inflation, rising Treasury yields, elevated oil prices, and lingering geopolitical uncertainty. Within the S&P 500 Index—which closed at a record high on Thursday before pulling back Friday—the energy sector advanced the most, while consumer staples and IT also posted gains. On the other hand, the consumer discretionary, real estate, and materials sectors led declines. U.S. Treasuries fell over the week as yields increased across most maturities in response to higher energy prices and inflation fears. As of Friday afternoon, the yield on the benchmark U.S. 10-year Treasury note had increased to around 4.59%, the highest level in over a year. US CPI rose 0.6% MoM in April, in line with expectations, while prices increased 3.8% yoy, the sharpest jump since May 2023. PPI (producer price index) rose 1.4% in April, the largest monthly increase since March 2022, while prices jumped 6.0% over the prior 12 months. U.S. retail sales rose 0.5% in April, in line with consensus expectations while jobless claims see modest uptick. Outside the US, the STOXX Europe 600 Index ended the week down 0.85% while the Nikkei 225 Index declined 2.08%. This was Bloomberg's Dollar Index's 2nd best week since November 2024 as the yen was dumped back down towards 160/USD. Oil is back above $100 while gold, silver and bitcoin dumped.
Have a great weekend
Charles & Syz Research Lab