Best European REIT ETFs for Income and Growth in 2026

Wall Street snapped a winning streak on Tuesday as hotter-than-expected inflation data rattled markets and reignited concerns over the Federal Reserve’s next move. ## Sticky Inflation Weighs on Risk Appetite The latest Consumer Price Index (CPI) report landed above consensus, sending equity indices lower and Treasury yields sharply higher. Investors recalibrated expectations for near-term rate cuts, with the data underscoring persistent price pressures across core categories. ## Market Overview The **S&P 500** dropped **1.6%** to close at **4,970**, marking its steepest one-day decline since February. The **Nasdaq Composite** shed **2.1%**, weighed down by tech and growth names especially vulnerable to higher rates. The **Dow Jones Industrial Average** lost **1.3%**, finishing the session at **37,850**. Bond markets sold off in response to the CPI print. The yield on the benchmark **10-year Treasury** surged **16 basis points** to **4.56%**, its highest level since November 2025. The move reflected a swift repricing of Fed policy expectations, with futures markets now assigning less than a 20% chance of a rate cut at the central bank’s June meeting. Commodities also felt the pressure. U.S. crude oil futures slipped **1.2%** to settle at **$84.90** per barrel, as risk-off sentiment outweighed ongoing supply concerns. **Gold** initially caught a bid on safe-haven flows, but reversed course to end flat at **$2,340** per ounce. In currency markets, the **U.S. Dollar Index (DXY)** jumped to **106.2**, its strongest reading in five months, as traders sought safety and higher yields. The **EUR/USD** pair fell to **1.0620**, reflecting dollar strength and renewed doubts about the European Central Bank’s rate path. ## Key Movers Big tech names led the market lower. Shares of **Apple (AAPL)** and **Microsoft (MSFT)** each fell over **2%**, as investors rotated out of growth stocks sensitive to interest rate expectations. The **semiconductor sector** also stumbled, with **Nvidia (NVDA)** down **3.4%** and **AMD (AMD)** off **2.9%**. Within the S&P 500, **real estate** and **utilities** sectors saw the sharpest declines, dropping more than **2%** apiece. Both sectors are especially rate-sensitive and tend to lag when yields climb. Conversely, **energy stocks** proved more resilient, cushioned by still-elevated oil prices and robust Q1 earnings reports from several major producers. Among individual names, **Delta Air Lines (DAL)** bucked the trend, climbing **1.1%** after reporting better-than-expected quarterly profits and raising its full-year forecast. Delta’s upbeat results offered a rare bright spot in an otherwise downbeat session. For investors seeking exposure to U.S. large caps from Europe, vehicles such as Irish-domiciled S&P 500 ETFs continue to attract attention. For a comprehensive breakdown, see our guide to the best Irish-domiciled S&P 500 ETFs for European investors in 2026. ## What to Watch Eyes now turn to tomorrow’s Producer Price Index (PPI) release, which will provide further clues on inflation trends at the wholesale level. Several Fed officials are also slated to speak this week, and markets will parse their comments for signals on the policy outlook. Earnings season accelerates, with major banks and consumer companies set to report. Their results and forward guidance could help clarify how corporate America is navigating the current macro backdrop. Finally, geopolitical developments in the Middle East and ongoing supply chain disruptions remain in focus for commodity and currency traders. For those exploring ways to diversify income streams amid market uncertainty, check out our guide on passive income ideas for Europeans in 2026. Stay tuned for tomorrow’s recap as investors digest fresh inflation data and central bank commentary.