S&P 500 Clings Near 7,409 as May Caution and 5% Yields Intensify

The S&P 500 trades near 7,409 after peaking at 7,428.97 on May 12, with its eight-week rally now threatened by surging Treasury yields and policy-driven inflation. April CPI climbed to 3.8% as the Iran-driven oil shock and tariffs lifted energy and consumer prices, pushing the 30-year yield above 5% for the first time since 2007. Consumer confidence has collapsed to a 1970s-era low of 44.8 even as the index remains near record highs. Hawkish Fed Chair Kevin Warsh and a Shiller CAPE above 42 raise the odds of tighter policy and a potential correction.