Wall Street ignores rising inflation, falling consumer confidence

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The stock market just had its best week since May 2025, buoyed by a "ceasefire" that has already been violated. Bombs are still falling, energy capacity in the region is still being damaged, and the Strait of Hormuz remains practically shut.The exchange of words wouldn't induce one's confidence either. We only have a ceasefire because of an 11th-hour truce, arranged by Pakistan's Prime Minister, who sought to stave off President Donald Trump's threats to "wipe out a civilization" and "send Iran back to the stone age."But as negotiations square up this weekend, there is so little common ground, and the foreboding feeling that even more destruction may be impending weighs heavily.The Trump Administration is reportedly preparing a new set of military action items if forthcoming talks collapse. Meanwhile, the President is posting on his social media website that "The only reason they [Iranians] are alive today is to negotiate."Despite the implication, the S&P 500 rose nearly 3.5% this week. It's up 7.44% since Mar. 30. That is a truly jarring bounce for the index, which, all things considered, seems to be conveniently ignoring the economic toll that is starting to be felt. Even on Friday, as stocks rose, the economic impacts of the war were a prominent talking point.On Friday, the Consumer Price Index for the month of March was released, showing that the rate of inflation tripled month-over-month on the record 21.2% spike in energy prices caused by the Iran conflict. It was the largest monthly increase in the record's history (going back to 1967).Inflation rose 3.3% year-over-year, accelerating from the 2.4% YoY in February. Core Inflation rose by a more modest 2.6% YoY, up from the 2.5% YoY reported last month.The higher rate of inflation almost certainly precludes the Federal Reserve from entertaining interest rate cuts this year, something the President has repeatedly urged the Fed to prioritize during his first year and change in office.At last glance, WTI Crude Oil was trading at $96.33/barrel, down from the nearly $117/bbl posted earlier this week after Iran hit one of Saudi Arabia's key production plants. But given the dramatic swings in the oil market, WTI could again test the three figures in the event the ceasefire crumbles.The University of Michigan's Consumer Sentiment Index fell to a record low in Apr. 2026, hitting 47.6. Americans' views of both current economic conditions and future expectations plummeted, declining from the year before. The report singles out the fact that "many consumers blame the Iran conflict for unfavorable changes to the economy."Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersBTC-USD Bitcoin USD 71,740.97 -1,018.30 (-1.40%)ETH-USD Ethereum USD 2,218.37 -15.83 (-0.71%)CL=F Crude Oil May 26 96.57 -1.30 (-1.33%)XRP-USD XRP USD 1.33 -0.02 (-1.30%)BTC-CAD Bitcoin CAD 99,314.61 -1,409.69 (-1.40%)PortfolioSign in to access your portfolioSign inTop gainersOGN Organon & Co. 8.83 +1.92 (+27.79%)XNDU Xanadu Quantum Technologies Limited 8.96 +1.31 (+17.12%)ALAB Astera Labs, Inc. 149.05 +19.59 (+15.13%)MANE Veradermics, Incorporated 68.80 +8.82 (+14.70%)TTMI TTM Technologies, Inc. 121.49 +13.96 (+12.98%)Top losersFSLY Fastly, Inc. 23.07 -6.39 (-21.69%)AKAM Akamai Technologies, Inc. 91.35 -18.26 (-16.66%)FICO Fair Isaac Corporation 922.37 -149.98 (-13.99%)SEZL Sezzle Inc. 59.71 -9.42 (-13.62%)NET Cloudflare, Inc. 166.99 -26.06 (-13.50%)Most activeNVDA NVIDIA Corporation 188.63 +4.69 (+2.55%)PLTR Palantir Technologies Inc. 128.06 -2.48 (-1.90%)HOLX Hologic, Inc. 76.01 0.00 (0.00%)INTC Intel Corporation 62.38 +0.66 (+1.07%)NOK Nokia Oyj 9.46 -0.09 (-0.94%)Top economic eventsEarnings eventsMy earnings eventsEarnings events