US equity markets are flirting with all-time highs, with the Nasdaq and S&P 500 closing on records despite macro headwinds and fresh tariff risks. The Dow Jones is up 1.4% for the week, and big tech stocks—especially an Apple bolstered by a $100 billion US investment pledge—continue to prop up benchmarks. Yet just beneath the surface, investors are showing nerves. What’s the real test ahead for this market rally?
All eyes are on Tuesday’s CPI inflation data, with forecasts predicting a 2.8% annual headline print and a core CPI uptick to 3%. Meanwhile, even as markets price in rate cuts from the Federal Reserve—and speculate on how far they’ll go—the looming expiration of the US-China tariff truce is giving traders pause. The upshot? Even with speculative fervor in areas like crypto and AI-linked IPOs, market strategists warn that either unexpected inflation or an abrupt economic dip could snap this risky rally back to reality. Get the week’s market calendar.
