📌 Global Market Overview | Friday, May 22 Global markets ended the week focused on U.S.–Iran tensions, Fed policy, and inflation risk. Talks mediated by Pakistan, Qatar, and Saudi Arabia have entered a sensitive stage, aiming to extend the ceasefire and prevent renewed military strikes. Still, major gaps remain over Iran’s nuclear program, sanctions relief, and reopening trade. On Wall Street, hopes for diplomatic progress supported risk appetite. $SPY and $SPX closed higher, while the S&P 500 recorded its 8th straight weekly gain — the longest winning streak since 2023. $DJI and $NDX also stayed positive, but markets remain fragile ahead of the U.S. long weekend. The key macro pressure came from weak U.S. consumer sentiment. The Michigan index fell to 44.8, while inflation expectations rose again. This supported the Fed’s hawkish stance, especially after Waller said near-term rate cuts do not make sense and that another hike could be needed if inflation expectations break higher. Key headlines: Japan inflation came softer than expected, reducing pressure on the BoJ for aggressive tightening. UK retail sales fell 1.3%, worse than expected, showing pressure from high energy costs and weaker consumers. Germany confirmed 0.3% Q1 growth, but stagflation risks remain. Canada retail sales beat expectations, but mainly due to higher fuel prices, while PPI rose on energy and raw materials. Lagarde said the $ECB will remain data-dependent, warning that the energy shock could still affect growth and inflation with a delay. Market snapshot: $XAU Gold: $4,504.87 (-0.85%) $NDX Nasdaq: +0.31% $SPX S&P 500: +0.29% $DJI Dow Jones: +0.45% $CL Oil: $97.03 (-0.98%) $DXY Dollar Index: +0.13% $BTC Bitcoin: $75,901 (-2.21%) $EURUSD: 1.1601 (-0.13%) $GBPUSD: 1.3436 (+0.04%) Bottom line: Sentiment was risk-on, but not fully confident. Diplomacy supported stocks and lower oil helped reduce pressure, but sticky inflation, hawkish Fed messaging, and geopolitical risk keep volatility alive. The market is not pricing panic. It is pricing hope with a warning label.