Warsh QT Push Risks S&P 500 Record at 7,580 as Bull Market Fades

New Fed Chair Kevin Warsh's plans to aggressively shrink the $6.7T balance sheet and reduce forward guidance now dominate equity risks after April CPI hit 3.8% and Strait of Hormuz shocks lifted oil. The S&P 500 closed at a fresh record of 7,580 on May 28 even as 30-year yields reached 5.18% and markets priced a 68% chance of a rate hike by year-end. With Shiller P/E near 42 and Cleveland Fed nowcasting 4.18% inflation for May, Warsh's QT agenda threatens higher volatility and compressed multiples despite the index's resilience through late May.