The S&P 500 finished essentially flat last week as a global surge in bond yields, driven by a worsening inflation outlook, outstripped risk appetite and capped equity gains.
President Trump renewed threats against Iran, saying the “clock is ticking,” as geopolitical risk adds to upside pressure on commodity prices and inflation expectations.
European politics shifted toward fiscal relief. Italian Prime Minister Giorgia Meloni is pressing Brussels to loosen fiscal rules to give governments more room to absorb the shock from the Iran conflict.
Supply worries intensified in energy markets after the International Energy Agency warned that commercial oil inventories are falling rapidly, underpinning another leg higher in crude.
Economic data were mixed. Switzerland surprised on the upside, with GDP expanding 0.5% quarter‑on‑quarter in 1Q26 versus consensus of 0.4%. China showed signs of slowing in April, led by weaker fixed‑asset investment.
Markets opened softer across the region: European and Asian equities slipped 0.5%–1%, and US futures pointed to an average 0.5% decline at the open. Oil continued to climb — Brent traded near $110 a barrel, up roughly 1.5% — as investors reassess growth, inflation and policy trajectories.