Markets wobble as tariff-led inflation shows its teeth

Show notes

US inflation data came in mixed, with headline CPI accelerating to 2.7% y/y while core inflation cooled—briefly lifting markets before tariff fears took over. Signs of price pressures from tariffs are already showing up: appliance, toy, and furniture prices are jumping. And now, Trump signals new tariffs on pharmaceuticals by month-end, with semiconductors possibly next. That could put pressure on U.S. chip stocks, despite their recent rally, as many still rely on overseas manufacturing. Meanwhile, Treasury yields are climbing, and the yen is sliding ahead of Japan’s elections. Nvidia surged on hopes of renewed China chip exports, while AMD and ASML rallied on strong AI demand. But energy prices fell sharply after a massive U.S. inventory build. Could this be the start of a pullback across sectors? We break down the inflation print, Fed expectations, election risks, and what it all means for stocks, yields and major currencies. Listen to find out more!