Deutsche Bank Warns S&P 500 Under Pressure from Oil and Inflation Amid Record Highs

The S&P 500 keeps printing fresh all-time highs above 7,400, but Deutsche Bank on May 13 cautioned that rising oil prices from supply constraints and geopolitical tensions, alongside persistent inflation, are compressing margins and pressuring valuations. The rally accelerated past 7,400 for the first time on May 11, fueled by Fed easing bias and US-Iran de-escalation, though Goldman Sachs labeled it 'froth' on May 12 amid 3.8% y/y April inflation—the highest since May 2023—and Strait of Hormuz risks delaying rate cuts. Technical supports at ~7,200 and ~7,050 are in focus ahead of US PPI today and Retail Sales/Jobless Claims tomorrow.