US Equity Investors to Focus on Inflation Data, Geopolitics This Week as Earnings Slow

BY MT Newswires | ECONOMIC | 06:56 AM EDT

06:56 AM EDT, 05/11/2026 (MT Newswires) -- US equity investors will look out for consumer price inflation as hopes diminish for a return to Iran peace talks and as quarterly earnings trickle down.

* The CPI on Tuesday and producer prices on Wednesday will reveal estimates for the Federal Reserve's preferred personal consumption expenditures, or PCE, inflation gauge on May 28, Scotiabank said in a note late Friday. Jerome Powell's term as Fed Chair is due to come to an end on Friday.

* "More important is that after the initial energy shock to March inflation readings, April will start the long period of evaluating potential second round passthrough effects into core prices," the note said. "Keep a close eye on the breadth of price increases that has been on an upswing long predating the war and with further upside likely."

* Other macroeconomic data due this week includes April's retail sales and existing home sales.

* West Texas Intermediate crude oil futures jumped 2.3% to $97.94, and Brent crude futures climbed 2.5% to $103.82 early Monday. US Treasury yields also advanced, with the 10-year up 2.6 basis points to 4.39% and the two-year higher by 3.1 basis points to 3.92%.

* Crude oil prices rose on Monday after President Donald Trump said Iran's response to its proposal for a halt to the war was "unacceptable."

* "Oil price dynamics remain crucial for bond markets and should set a bearish tone at the start of the week," Commerzbank's Hauke Siemssen and Erik Liem was cited as saying in a report from The Wall Street Journal.

* Quarterly earnings due this week include Cisco Systems (CSCO) and Applied Materials (AMAT) . Tech earnings, especially the so-called AI trade, have helped investors offset the detrimental impact of the Iran war on oil prices and mounting concerns related to inflation, which has in turn pushed up bond yields.

* President Donald Trump will visit China this week for a summit with his counterpart, Xi Jinping.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article