Above the Noise: Solid ground for markets

Markets still appear to be on solid ground, supported by strong earnings, tight credit spreads, and restrained corporate leverage.

Higher gas prices are a real burden for households, but they look more like a sentiment drag than a shock large enough to derail consumer spending. Inflation is the main risk to watch, especially if expectations keep rising and push the Fed toward additional tightening.

For now, the backdrop remains relatively stable, but investors should stay alert for any shift in inflation or credit conditions that could weaken that foundation.