Our point of view on recent market and economic activity.

Inflation remains elevated, keeping the Fed on hold and pushing rate cuts out of view, while energy prices and geopolitical tensions complicate the outlook.

Oil traders were busy rolling their futures positions during Thursday’s trading session with the front month settling flat, while WTI’s July deliveries settled higher as the conflict in Iran remains in focus.

The S&P 500 and Nasdaq Composite are hitting fresh record highs as easing oil prices, Treasury yields, along with optimism over the Trump/Xi meeting boost investor sentiment.

Investors might be focused on any trade news coming out of the U.S. meeting with China, as well as any progress addressing the war. April retail sales could reflect rising prices.

After a hot CPI, investors expect more of the same from PPI today. Rate hike odds and yields rose with oil early this week, while Cisco reports later and Trump visits China.

Yields for preferred securities have generally risen more than corporate bond and long-term Treasury yields over the past few months, making them more attractive to investors.

Kevin Warsh set to be confirmed as the next Fed chair, Senate committee meets to consider the CLARITY Act, President Trump heads to China, and the gerrymandering wars heat up.

Today's 8:30 a.m. ET CPI report is the key data point of the day. A 0.6% gain is expected. Rising oil and rising yields keep causing concern after a setback in peace negotiations.