Wall Street’s inflation jitters are back

Inflation is the guest nobody invited

Wall Street woke up a little sweaty Tuesday. Futures faded as inflation fears resurfaced, with Ed Yardeni arguing the Fed may be “behind the curve” and could pivot to a tightening bias by June. That’s a fancy way of saying the easy-money party might be over before anyone finished dessert.

Rates are doing the heavy lifting

The 10-year Treasury sat around 4.60% while the 2-year hovered near 4.06%, a combo that keeps the market’s pulse elevated. Meanwhile, CME FedWatch still showed traders mostly betting the Fed holds rates steady in June, which tells you the room is split between “stay calm” and “uh oh.”

A few stock-specific wrinkles

The article also flagged a handful of names feeling the tape:

• XP got knocked lower after worse-than-expected first-quarter results and a CFO change.
• Akamai slid after floating $1.3 billion of senior notes.
• Atmos Energy jumped on strong earnings and a bigger dividend.
• GE Aerospace got a lift from a 10-year maintenance deal with Japan Airlines.
• Toll Brothers is still waiting for its earnings checkup after the bell.

Big picture

This is the classic market tug-of-war: inflation nerves on one side, “the economy is still hanging in there” on the other. If rates stay sticky, investors may keep paying a premium for certainty and punishing anything that smells like duration risk.