Part 12/15:
Despite short-term volatility, markets stabilized by Friday, but the tone remains cautious. Consumers anticipate higher inflation, which may lead to a slowdown in investment and spending. The ongoing tension in East Asia—including US support for Taiwan—adds geopolitical risk to economic forecasts.
Investors and policymakers continue to observe inflation indicators closely. Persistent inflationary expectations could undermine confidence in the Federal Reserve’s ability to control inflation, potentially triggering higher interest rates and affecting valuations, especially for growth stocks like Tesla.