ld up better, with the STOXX 600 near record highs, though software weakness and a drop in Novo Nordisk limited gains. Meanwhile, the data didn’t push the Fed off its wait-and-see stance: hiring looked softer in ADP, ISM services stayed steady, and input prices rose – keeping market pricing for the next cut closer to June than earlier.
Why should I care?
For markets: AI headlines can reshuffle winners overnight.
If investors think new AI tools will commoditize parts of software, they’ll demand clearer proof of pricing power – and that can hit long-duration growth stocks hardest. A firmer dollar adds another drag for US multinationals’ overseas earnings, while higher oil can keep inflation worries alive and cap how quickly rate-cut hopes return.
The bigger picture: Geopolitics and inflation are back in the same sentence.
Oil’s rise on US–Iran friction is a reminder that supply shocks can quickly feed into inflation expectations. With services-sector input costs still climbing, the Fed has less room to rush toward easier policy – which can keep global risk assets choppier than last year’s straight-line rally.
