Wall Street is increasingly concerned about long-term inflation as expectations rise, with the five-year break-even rate reaching 2.7% and the 10-year rate hitting 2.5%. The latest consumer price index release has exacerbated these worries, leading to a decline in tech stocks and a rise in Treasury yields. The surge in inflation expectations is primarily driven by higher oil prices, posing challenges for the Federal Reserve's interest rate policy.

Private markets are taking on a more prominent role in individual investor portfolios and 89% of FAs expect private markets to outperform public markets over time. Explore the strategies advisors are utilizing for diversification, income generation, and capital appreciation and preservation.

Bond traders are renewing bearish bets on US Treasuries after April data showed inflation accelerating on higher gasoline and food prices. Derivatives markets are increasingly pricing in the risk of a Federal Reserve rate hike by mid-2027, while positioning data show growing short exposure across the curve. The shift reflects expectations that elevated energy costs could keep inflation higher for longer.

JPMorgan Chase has filed for a second tokenized money market fund that would issue blockchain-based shares on Ethereum, allowing investors to hold or transfer fund interests digitally and use them as collateral in crypto markets. The move builds on growing Wall Street adoption of tokenized real-world assets, a market that has surged to about $32 billion as firms accelerate blockchain-based fund offerings tied to US regulatory frameworks.

Treasury yields have risen as oil prices surge amid the US-Iran war, raising concerns around inflation. The 30-year yield has reached 5.02%, close to this year's high, while the two-year yield is around 4%.

The Senate confirms Kevin Warsh to a 14-year term on the Federal Reserve Board, clearing a key step toward his expected confirmation as Fed chair as early as Wednesday. Warsh succeeds Jerome Powell amid heightened political pressure on the central bank and renewed inflation risks tied to higher oil prices, with markets increasingly questioning prospects for near-term rate cuts.

President Donald Trump has asked the House to pass the Senate's 21st Century ROAD to Housing Act without amendments, emphasizing a provision that limits Wall Street's ability to buy single-family homes. However, House Republicans are pushing for changes, including a permanent ban on a central bank digital currency and adjustments to the investor restriction language.

In an interview, CFTC Chair Michael Selig says prediction markets should be regulated as financial markets rather than entertainment, signaling continued federal oversight amid disputes with state gaming regulators. Selig also emphasized the agency's authority to police insider trading and indicated the CFTC may pursue new rulemaking on artificial intelligence as exchanges and market participants seek to deploy AI tools across derivatives markets.