Traders Retreat from Risk Assets Amid Inflation Concerns and Rising Oil Prices

Traders have reduced their exposure to risk assets as they await a critical inflation report. Bloomberg posted on X that the recent surge in U.S. equities has lost momentum due to escalating tensions between Washington and Iran, which have driven oil prices upward. The market's focus is now on the upcoming inflation data, which is expected to provide insights into the Federal Reserve's future monetary policy decisions. The geopolitical situation has added to the uncertainty, prompting investors to reassess their positions in the market.