The chips appear to be stacked against Jerome Powell's successor in the early going.
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The chips appear to be stacked against Jerome Powell's successor in the early going.
Asian shares were mixed Tuesday as uncertainty about what will happen with the Iran war roiled global markets. Japan's benchmark Nikkei 225 lost 0.6% in morning trading to 60,433.79, erasing initial gains after the government reported that the economy grew for the second straight quarter in January-March, mainly due to better than expected consumer spending. Shares in Samsung Electronics slipped 3.8% and SK Hynix fell 4%, tracking losses in tech shares overnight on Wall Street.

<body><p>STORY: Wall Street's main indexes ended mixed on Monday, with the Dow adding about a third of a percent, the S&P 500 little changed and the tech-heavy Nasdaq shedding half a percent.</p><p>Ongoing worries about the disruption of oil supplies, inflation and elevated borrowing costs weighed on stocks and pushed the 10-year Treasury yield earlier in the session to its highest level since February 2025.</p><p>Kevin Mahn is president and chief investment officer at Hennion & Walsh Asset Management.</p><p>“Investors continue to try and digest higher oil prices, which have led to higher gas prices and introduced even more inflationary pressures into the system. So each time we hear news that the impasse in the Strait of Hormuz may be coming to an end, you see the tailwind come into the market and stocks move higher. On the flip side, each time we learn that that Strait of Hormuz is going to be locked, or at least blocked for a longer period of time, investors then get concerned, bond yields shoot up and the prospects for a rate hike as opposed to a rate cut get brought back on to the table."</p><p>The Nasdaq fell for a second consecutive session as investors took a break from the AI-driven rally that started in late March.</p><p>Seagate Technology fell almost 7%, while peer Micron shed 6%. Shares of Sandisk dropped more than 5% and Western Digital lost nearly 5%. </p><p>:: Nvidia</p><p>The world's most valuable company, Nvidia, also closed lower, ahead of its scheduled quarterly earnings report later this week.</p><p>:: Archive</p><p>Elsewhere in the market, shares of Regeneron tumbled almost 10% as the drugmaker's experimental treatment for melanoma missed the main goal in a late-stage trial.</p></body>
Wall Street weighed inflation concerns and counted down to Nvidia earnings.
Wall Street weighed inflation concerns and counted down to Nvidia earnings.
US stock futures traded flat as Wall Street weighed inflation concerns and counted down to Nvidia (NVDA) earnings.
US stock futures traded flat as Wall Street weighed inflation concerns and counted down to Nvidia (NVDA) earnings.
Oil prices and stock markets worldwide kept swinging with uncertainty about what will happen with the Iran war. The S&P 500 swiveled between gains and losses in the morning before ending 0.1% lower Monday, its second straight drop since setting an all-time high last week. The Dow Jones Industrial Average added 0.3%, and the Nasdaq composite fell 0.5%.
May 18 (Reuters) - The S&P 500 and the Nasdaq opened higher on Monday as heavyweight semiconductor stocks recovered, while a bond market rout that had sparked a selloff the previous week appeared to
Stocks open the day with modest gains as investors look ahead to earnings from Nvidia and Walmart to gauge the health of the AI trade and the economy amid ongoing Middle East tensions. The S&P 500 and the tech-heavy Nasdaq rose 0.1%, while the Dow was flat. With only a few economic data releases in the week ahead, investors are paying attention to other pieces of news, like signs of progress in the Middle East.
US stocks have been predicted to start Monday trading in the red, as they ended last week, with investors continuing to worry about rising bond yields, stubborn inflation and the economic fallout from higher oil prices. Dow Jones futures were down around 262 points or 0.4%, while S&P 500...
US equity investors will remain focused on President Donald Trump's attempts to force Iran to reopen
This is nightmare fuel for a historically expensive stock market that had already priced in additional rate cuts.
The S&P 500 tumbled 1.2% on Friday, the Nasdaq Composite fell 1.5% and the Dow Jones Industrial Average shed 537 points, or 1.1%. The 30-year government bond hit its highest closing yield in nearly 20 years, at 5.127%. President Trump said that he and Chinese leader Xi Jinping “feel very similar on Iran” and both want the conflict to end.
Stocks looked set to fall again on Monday as investors continued to worry about higher inflation, with the U.S. and Iran seemingly making no progress in their ongoing peace talks. The three major indexes tumbled on Friday, dragged down by soaring U.S. Treasury yields. The lack of a peace deal to end the conflict in the Middle East has caused investors to fret about a flare-up in inflation, with shipping through the Strait of Hormuz still disrupted.
The stock market is near highs but oil prices and yields are headwinds with Trump issuing new Iran threats. Nvidia and Walmart earnings loom.
Paring down the central bank's balance sheet, or doing nothing at all, poses potentially dire consequences for the stock market.
Jerome Powell's successor and the Chicago Fed president foresee wildly different interest rate outcomes from the evolution of AI.

Investors step into the week after a Friday in the red, spurred by a stable of geopolitical uncertainties post Trump-Xi summit, rising bond yields, and sticky inflation.
It's incredibly rare when a sitting Fed chair interjects their opinion on stock valuations -- and when this happens, it shouldn't be ignored.

<body><p>STORY: Wall Street's main indexes retreated from AI-fueled record highs on Friday, with the Dow dropping 1%, the S&P 500 shedding one-and-a-quarter percent and the Nasdaq declining more than one-and-a-half percent.</p><p>Stocks moved lower as a jump in benchmark Treasury yields reflected surging energy prices and concerns about long-term inflation.</p><p>Leah Bennett is chief investment strategist at Concurrent Investment Advisors.</p><p>“Equities are trading down today primarily, I think, because people are disappointed not to see any sort of movement between Trump and Xi coming out of the summit regarding the conflict in the Middle East. So, oil is up another 4% today. We obviously saw an impact on the CPI (Consumer Price Index) and the PPI (Producer Price Index). And the longer that oil prices stay up, the longer we're going to have rising inflation. And this is the first time we've really seen the ten-year inflation expectations cross 2.5%. And historically, that's been very consistent with a period where the Fed had to increase interest rates.”</p><p>Friday marks Jerome Powell's last day as U.S. Federal Reserve chair. Incoming Chair Kevin Warsh is saddled with the potential need for a rate hike if a protracted Iran war leads to sticky inflation.</p><p>Among individual stock moves, the AI rally largely stalled, with Nvidia losing nearly 4.5%, AMD shedding more than 5.5% and Intel dropping more than 6%.</p><p>On the flip side, shares of Microsoft rose 3% following the disclosure of a new position in the company taken by Bill Ackman's hedge fund Pershing Square.</p><p>And shares of Ford slid about 7.5%, retreating from a near 21% surge over the last two sessions on optimism over the automaker's energy storage business.</p></body>
The S&P 500 tumbled 1.2% on Friday, the Nasdaq Composite fell 1.5% and the Dow Jones Industrial Average shed 537 points, or 1.1%. The 30-year government bond hit its highest closing yield in nearly 20 years, at 5.127%. President Trump said that he and Chinese leader Xi Jinping “feel very similar on Iran” and both want the conflict to end.
The Nasdaq Composite and the S&P 500 fell from record highs as inflation concerns pushed Treasury yi