Morning Bid: Summer clouds

Article excerpt

Markets face a crosscurrent of risks as summer arrives: inflation remains sticky despite Federal Reserve rate hikes, earnings growth is slowing, and geopolitical tensions simmer beneath surface calm. Treasury yields have climbed as investors reassess when rate cuts might arrive, while tech stocks, which powered much of this year's gains, face headwinds from higher borrowing costs. Economic data points suggest resilience, but strategists warn that the sweet spot between growth and disinflation is narrowing. The coming weeks will test whether the bull run can survive the season's uncertainties.