- Wall Street is experiencing a broad-based selloff, with major US indices remaining under significant pressure. The S&P 500 is down around 0,7%, while the Nasdaq is the weakest performer, falling nearly 1,9%.
- The main driver behind today’s decline is undoubtedly the stronger-than-expected CPI inflation reading. US inflation accelerated to 3.8% year-over-year, reaching its highest level since May 2023, increasing concerns that interest rates may remain elevated for longer and weighing on overall market sentiment.
- The rise in inflation was driven primarily by higher energy prices, including fuel costs, which have been highly sensitive to geopolitical developments in recent months. At the same time, persistent pressure in core inflation categories suggests that the disinflation process has clearly slowed, with elevated price pressures extending beyond the most volatile components of the economy.
- The US Senate approved Kevin Warsh as a member of the Federal Reserve Board, bringing him one step closer to becoming the next Chair of the Federal Reserve, with a final vote expected later this week. The nomination is viewed as a major development for the future direction of US monetary policy and the Fed’s approach to inflation.
- Markets also continue to raise concerns over Warsh’s potentially close relationship with the current US president, fueling doubts about the future independence of the Federal Reserve.
- Geopolitical tensions surrounding Iran are rising again, with reports suggesting that some advisers to Donald Trump are increasingly considering the possibility of resuming military operations after ceasefire talks collapsed and Iran rejected the latest proposal.
- The total cost of US involvement in the conflict is now estimated at approximately $29 billion, highlighting the growing fiscal and strategic burden of the confrontation.
- The United States is also reportedly demanding a permanent halt to Iran’s uranium enrichment activities and the transfer of enriched uranium to the US, conditions that Tehran considers unacceptable and which are further escalating tensions in negotiations.
- A meeting between Donald Trump and Xi Jinping is scheduled to take place in Beijing on May 14–15, where discussions are expected to include Iran, oil markets, and broader geopolitical and trade-related tensions.
- European markets also ended the session in negative territory, with major indices across the continent facing heavy pressure. France’s CAC 40 lost nearly 1%, while Germany’s DAX and Spain’s IBEX 35 both declined around 1.5%. Britain’s FTSE 100 performed relatively better, posting only modest losses.
- Brent crude oil continues to benefit from escalating geopolitical tensions, with prices rising sharply and approaching the $110 per barrel mark.
- Precious metals are trading under mild pressure. Gold is down around 1%, testing the $4,690 per ounce level, while silver is also slightly weaker, hovering near $85 per ounce.
- Meanwhile, cryptocurrencies are experiencing a more pronounced selloff. Bitcoin is down nearly 2% and testing the $80,000 level, while Ethereum is falling more than 2.5%, slipping below $2,300.
💯Daily Summary - Wall Street Close to Records Ahead of Long Weekend
🔴A New Era at the Fed: Kevin Warsh Takes the Helm. US30 above 50k
Is Waller echoing Warsh's stance? Keeping rates steady but pressing ahead with balance sheet reduction?
📆Three Markets to Watch Next Week (22.05.2026)
