Market Volatility Soars Amid Rising Tariffs and Inflation Concerns

Recent market fluctuations are driven by shifting risk appetites. The S&P 500 is inching closer to 6000 points, indicating a surge in risk-taking after late April’s positive trend. However, President Trump’s proposal to increase EU tariffs on goods to 50% has shaken markets, emphasizing the ongoing impact of policy risks. Inflation continues to be a major concern with Friday’s PCE data crucial for informing the Federal Reserve’s future actions. While oil prices have fallen, port congestion across Europe is spreading globally, potentially pushing shipping costs higher and exacerbating inflationary pressures.