GDP Revision Shock, Sticky Inflation Fan Stagflation Fears: What's Moving Markets Friday?

Key event: a stark downward revision to Q4 economic growth combined with a sticky inflation reading is weighing on markets, while an Iran-related oil shock raises energy risk. U.S. equities traded mixed as investors balanced weaker growth data and persistent inflation, implying potential upward pressure on yields and renewed risk-off positioning. The geopolitical-driven oil supply risk could widen market moves and feed through to commodities and rate expectations.

Analysis

Key event: a stark downward revision to Q4 economic growth combined with a sticky inflation reading is weighing on markets, while an Iran-related oil shock raises energy risk. U.S. equities traded mixed as investors balanced weaker growth data and persistent inflation, implying potential upward pressure on yields and renewed risk-off positioning. The geopolitical-driven oil supply risk could widen market moves and feed through to commodities and rate expectations.