Peakfolio Team
May 12, 2025
Between May 5 and May 12, markets experienced renewed turbulence as hotter-than-expected inflation data sparked fresh debate over the Federal Reserve’s next moves.
After several weeks of stability, volatility resurfaced midweek when the latest CPI report came in above expectations, reigniting fears that rate cuts could be delayed. The S&P 500 and Nasdaq both slipped modestly, led by losses in growth and consumer discretionary names. Treasury yields ticked higher as investors adjusted to the possibility of tighter monetary conditions persisting through the summer.
Still, the pullback was relatively contained. Many traders viewed the dip as a natural reaction following April’s strong rebound rather than the start of a deeper downturn. Energy stocks benefited from rising oil prices, while defensive sectors like healthcare and utilities held steady. As earnings season winds down, the market’s focus has clearly shifted toward inflation trends and the Fed’s messaging in the weeks ahead.