--- title: Inflation Jitters and Political Turbulence Snap a Six-Week Winning Streak description: Global equities broke a six-week winning streak as a hotter-than-expected US inflation print pushed yields higher and drove a broad risk-off rotation, with US large caps holding up while the rest of the world weakened. image: https://blog.syzgroup.com/hubfs/PicWrap-1.png --- [![Syz Private banking](https://blog.syzgroup.com/hs-fs/hubfs/Logo.png?width=140&name=Logo.png "Syz Private banking")](https://www.syzgroup.com/fr) ## **Thinking** out loud [Subscribe](https://25733253.hs-sites-eu1.com/newsletter-signup?hsLang=en) [![Contact Us](https://hubspot-no-cache-eu1-prod.s3.amazonaws.com/cta/default/25733253/3d762f49-4e71-4f99-97b1-bf6781ef3da2.png)](https://hubspot-cta-redirect-eu1-prod.s3.amazonaws.com/cta/redirect/25733253/3d762f49-4e71-4f99-97b1-bf6781ef3da2) - [OUR SERVICES](https://www.syzgroup.com/en/private-banking) - [ABOUT SYZ](https://www.syzgroup.com/en/about/welcome-to-syz) - [CAREERS](https://www.syzgroup.com/en/careers) - [PRESS](https://www.syzgroup.com/en/news) - [Blog Homepage](https://blog.syzgroup.com) - [Slow Food for Thought](https://blog.syzgroup.com/slow-food-for-thought) - [Focus](https://blog.syzgroup.com/slow-food-for-thoughts/tag/focus) - [Asset allocations Insights](https://blog.syzgroup.com/slow-food-for-thoughts/tag/asset-allocation-insights) - [Market Outlook](https://blog.syzgroup.com/slow-food-for-thoughts/tag/market-outlook) - [Swiss Perspectives](https://blog.syzgroup.com/slow-food-for-thoughts/tag/swiss-perspectives) - [Syz the moment](https://blog.syzgroup.com/syz-the-moment) - [Crypto corner](https://blog.syzgroup.com/crypto-corner) - [Syz AI Insights](https://blog.syzgroup.com/syz-ai-insights) - [Fast Food for Thought](https://blog.syzgroup.com/fast-food-for-thought) - [The week in seven charts](https://blog.syzgroup.com/fast-food-for-thoughts/tag/the-week-in-seven-charts) - [Flash](https://blog.syzgroup.com/fast-food-for-thoughts/tag/flash) - [Fixed Income Weekly](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-fixed-income) - [Equity Weekly](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) - [Global markets outlook](https://blog.syzgroup.com/fast-food-for-thoughts/tag/global-markets-outlook) - [CONTACT](https://www.syzgroup.com/en/contact-us/form) - [ENGLISH](https://www.syzgroup.com/) - [FRANÇAIS](https://www.syzgroup.com/fr) - [Slow Food for Thought](https://blog.syzgroup.com/slow-food-for-thought) - [Focus](https://blog.syzgroup.com/slow-food-for-thoughts/tag/focus) - [Asset allocations Insights](https://blog.syzgroup.com/slow-food-for-thoughts/tag/asset-allocation-insights) - [Market Outlook](https://blog.syzgroup.com/slow-food-for-thoughts/tag/market-outlook) - [Swiss Perspectives](https://blog.syzgroup.com/slow-food-for-thoughts/tag/swiss-perspectives) - [Fast Food for Thought](https://blog.syzgroup.com/fast-food-for-thought) - [Flash](https://blog.syzgroup.com/fast-food-for-thoughts/tag/flash) - [Weekly Fixed Income](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-fixed-income) - [The week in seven charts](https://blog.syzgroup.com/slow-food-for-thoughts/tag/the-week-in-seven-charts) - [Global markets outlook](https://blog.syzgroup.com/fast-food-for-thoughts/tag/global-markets-outlook) - [Weekly Equities](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) - [Syz the moment](https://blog.syzgroup.com/syz-the-moment) - [Crypto corner](https://blog.syzgroup.com/crypto-corner) - [Syz AI Insights](https://blog.syzgroup.com/syz-ai-insights) - [Our Services](https://www.syzgroup.com/en/private-banking) - [About Syz](https://www.syzgroup.com/en/about/welcome-to-syz) - [Careers](https://www.syzgroup.com/en/careers) - [Press](https://www.syzgroup.com/en/news) - [Contact](https://www.syzgroup.com/en/contact-us/form) - [English](https://www.syzgroup.com/) - [Français](https://www.syzgroup.com/fr) ## **Sign-up** for our newsletter This website uses cookies to enhance user navigation and to collect statistical data. 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If you made a mistake, please change here USA Country Switzerland Canada: Other than Ontario, Quebec, Alberta Canada: Ontario, Quebec or Alberta USA Other country Language Language English French German Italian I confirm Legal information This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. [Weekly Equities](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) ### Inflation Jitters and Political Turbulence Snap a Six-Week Winning Streak Global equities broke a six-week winning streak as a hotter-than-expected US inflation print pushed yields higher and drove a broad risk-off rotation, with US large caps holding up while the rest of the world weakened. [**Jakub Dubaniewicz**](https://blog.syzgroup.com/fast-food-for-thought/author/jakub-dubaniewicz) **-** **Monday, 05/18/2026** | - [![Pdf](https://blog.syzgroup.com/hubfs/pdf%20(1).png)](https://blog.syzgroup.com/fast-food-for-thought/Equity%20Weekly%203-9%20April%202026) - - - - ## **The Chart of the week** **S&P 500 made a new all time high on 14 May, while US onsumer sentiment remain poor** ![](https://blog.syzgroup.com/hs-fs/hubfs/undefined-May-18-2026-12-38-03-1806-PM.png?width=586&height=406&name=undefined-May-18-2026-12-38-03-1806-PM.png)   ## **What happened last week?**   **Global markets** Global equity markets retreated from Friday 8 to Friday 15 May 2026, breaking a six-week winning streak. A hotter-than-expected US inflation print rekindled fears of prolonged monetary tightening, while geopolitical optimism stalled, weighing on risk sentiment. The MSCI All Country World Index ended the week down 0.5%, with a pronounced divergence between resilient US large caps and broad-based weakness elsewhere. Developed markets ex-US and emerging markets bore the brunt of the selling: MSCI AC World ex USA fell 1.8%, while MSCI Emerging Markets declined 2.4%. Energy cost pressures and rising yields amplified headwinds across rate-sensitive and commodity-importing economies. The pivotal macro catalyst arrived on Tuesday 12 May: US headline CPI for April printed at 3.8% year-on-year, above the 3.7% consensus and the highest reading since May 2023. Core CPI held at 2.8%, but the data was sufficient for markets to fully price out any Fed rate cuts in 2026, pushing the 30-year Treasury yield to a multi-year high and placing rate-sensitive equity segments under pressure. Concurrently, the US–China summit concluded on 15 May with constructive rhetoric. Presidents Trump and Xi agreed that the Strait of Hormuz “must remain open”. China agreed to buy 200 Boeing jets, while the US cleared ten Chinese firms for Nvidia H200 chip exports. Yet equity markets still sold off into the Friday close as bond markets continued to reprice the Fed policy path. The US Senate confirmed Kevin Warsh as Federal Reserve Chair on 13 May, inheriting an economy running at a GDPNow estimate of 4.0% with inflation materially above target. **US** US equities staged an intra-week rally to fresh record highs before reversing sharply on Friday, leaving the S&P 500 with a marginal weekly gain of 0.2% and the Nasdaq 100 down 0.3%. The equal-weighted S&P 500 fell 1.3%, highlighting the narrowness of market leadership. Small-cap stocks were notably weak: the Russell 2000 shed 2.3% and the S&P MidCap 400 lost 2.4%, underscoring investor preference for large-cap resilience amid rising cost-of-capital concerns. The S&P 500 briefly crossed 7,500 for the first time on Thursday 14 May before surrendering those gains on Friday, as the Dow Jones retreated 537 points, weighed by declines in Nvidia (-4.4%), Boeing (-3.7%), and Caterpillar (-3.4%). At the sector level, energy was the standout performer, surging 6.7% as oil prices rebounded on Middle East supply concerns. Healthcare added 1.1%, while technology edged up 0.4% and consumer staples rose 0.5%. The most notable single-stock move was Cisco, which surged following a record quarterly result: revenue increased 12% year-on-year to $15.8bn, and management raised full-year AI order guidance to $9bn, citing hyperscaler demand well ahead of expectations. Conversely, consumer discretionary (-3.1%), real estate (-2.7%), and materials (-2.5%) were the worst-performing sectors, with regional banks also under pressure as the iShares US Regional Banks ETF fell 3.6%. On the macro front, initial jobless claims for the week ending 9 May were 211,000, slightly above estimates, while US retail sales rose 0.5% in line with expectations; however, the CPI overshoot dominated the policy narrative and set the tone for Friday’s broad risk-off close. **Europe** European equity markets underperformed, with the MSCI Europe 600 falling 1.8% (in USD terms) - a meaningful de-rating reflecting the convergence of inflationary concerns, domestic political instability, and fading optimism over a quick resolution to the Middle East conflict. The DAX declined 2.8%, the CAC 40 dropped 2.7%, and the FTSE 100 lost 2.1%. MSCI Europe Mid Cap fell 2.4%, underscoring broad-based weakness rather than concentrated large-cap pressure. France’s unemployment rate rose to 8.1% in the first quarter (the highest since early 2021) adding to growth concerns, while eurozone industrial production in March grew just 0.2% month-on-month, marginally below forecasts. Germany’s ZEW sentiment index recovered modestly to -10.2 in May from -17.2 in April but remained firmly in contraction territory. A deepening political crisis in the UK was a key source of volatility. Health Secretary Wes Streeting’s resignation on Thursday, alongside calls from over 70 Labour MPs for Prime Minister Starmer to outline a timetable for departure, sent sterling sharply lower, with the pound declining approximately 2.3% against the dollar — its worst weekly performance since November 2024. UK gilt yields surged, with the 10-year exceeding 5.1% mid-week, pressuring bank stocks: NatWest, Lloyds, and Barclays each fell around 4% on Tuesday alone. At the sector level, defence names lagged as the WisdomTree Europe Defence Fund dropped 6.8% amid reports of stalled US–Iran peace talks, removing a key tailwind from the prior rally. Construction and materials (-3.8%) and utilities (-3.4%) also declined sharply. On the positive side, energy (+1.6%) and defensive sectors provided partial offsets: consumer staples (+1.3%), healthcare (+1.3%), and telecommunications (+1.7%). Switzerland was relatively resilient, down just 0.3% over the week. **Rest of the world** Emerging markets had a challenging week, with MSCI EM declining 2.4% in USD terms. MSCI Brazil was the worst performer among major indices, falling 7.2%, reflecting commodity price volatility, currency depreciation, and sensitivity to the global risk-off shift driven by US inflation. India also declined 4.0% after wholesale price inflation surged to 8.3% year-on-year in April, versus a 4.4% consensus, the largest overshoot in the current cycle, amplifying domestic inflation concerns. EMQQ, the Emerging Markets Internet ETF, fell 4.7%, extending its relative underperformance as higher global yields weighed on growth-oriented EM technology names. Asian markets were broadly weaker, although Japan was a relative outperformer. MSCI Japan declined 0.8%, supported by rotation into financials and value-oriented sectors as domestic bond yields rose in anticipation of continued Bank of Japan policy normalisation, partially offsetting profit-taking in semiconductor and AI-related stocks. Taiwan’s TAIEX fell 1.5% despite constructive signals from US–China tech discussions, reflecting Friday’s broad risk-off selling in semiconductors. MSCI Korea declined 1.0%, pulling back from record highs after the KOSPI briefly crossed 8,000 intra-week. China was more nuanced: MSCI China ended the week down 2.5%, as early optimism linked to the Trump–Xi summit faded amid the broader market sell-off. China’s CPI rose 1.2% year-on-year in April, above the 0.9% consensus, while PPI moved sharply higher, driven by commodity-sector pricing gains. Singapore was the lone regional outperformer, gaining 1.2% on the back of financial sector resilience. --- ## **Our view on equity** **Equity asset class** We have slightly increased our equity exposure but remain neutral overall, as geopolitical risks and volatility are likely to persist. In this context, we have raised Europe to market weight and slightly increased our exposure to Japan and emerging markets. **Earnings** The outlook has become more constructive, with a prolonged conflict now appearing less likely. Crude oil prices have eased, and natural gas - particularly relevant for Europe - has declined back toward its average levels of the past three years. 2026 EPS forecasts have been revised up and point to solid growth: approximately +22% for the S&P 500, +16% for the STOXX Europe 600 and +11% for MSCI Japan. **Valuation** From a valuation perspective (12-month forward P/E), valuations have improved but remain above historical averages for the S&P 500 and the Nikkei, while they appear more attractive for the STOXX Europe 600 and Asia ex-Japan. --- #### Disclaimer This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. Read More ## Related Articles [Weekly Equities](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) #### [Central Banks Deliver on a Well-Flagged Hawkish Pivot](https://blog.syzgroup.com/fast-food-for-thought/central-banks-deliver-on-a-well-flagged-hawkish-pivot?hsLang=en) Fed and BoJ hikes, an oil-driven inflation scare, and an AI-safety debate drove sector rotation across global equities over the past week. **[Jakub Dubaniewicz](https://blog.syzgroup.com/author/jakub-dubaniewicz?hsLang=en)** | 21/09/2026 [Weekly Equities](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) #### [Oil, Inflation and Trade Tensions Rattle Equities as Memory Chips Hold the Line](https://blog.syzgroup.com/fast-food-for-thought/oil-inflation-and-trade-tensions-rattle-equities-as-memory-chips-hold-the-line?hsLang=en) Global equities fell on oil, inflation and trade risk, while a Korea-led memory-chip rally offset losses in EM and rotated tech away from Nvidia. **[Jakub Dubaniewicz](https://blog.syzgroup.com/author/jakub-dubaniewicz?hsLang=en)** | 14/09/2026 [Weekly Equities](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) #### [Payrolls Surprise and Middle East Tensions Revive the Rate Hike Debate](https://blog.syzgroup.com/fast-food-for-thought/payrolls-surprise-and-middle-east-tensions-revive-the-rate-hike-debate?hsLang=en) Global equities were roughly flat over the week to 4 September 2026, as a much stronger than expected US August jobs report and renewed US-Iran tensions pushed oil prices and bond yields higher, reviving the case for a September Fed rate hike. The repricing hit European equities harder than the US, with German and French markets underperforming on rate- and energy-sensitive exposure, while banks and energy stocks outperformed globally. Within US tech, a sharp divergence emerged inside the Magnificent Seven, driven by company-specific news at Meta and Nvidia rather than a shared theme. Brazil was the standout market of the week, rallying on rate-cut expectations and firmer oil prices. **[Jakub Dubaniewicz](https://blog.syzgroup.com/author/jakub-dubaniewicz?hsLang=en)** | 07/09/2026 ## Straight from the Desk # Syz the moment Live feeds, charts, breaking stories, all day long. [Discover more](https://blog.syzgroup.com/syz-the-moment?hsLang=en) ## **Thinking** out loud Sign up for our weekly email highlighting the most popular posts. 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