Weekly Commentary: Higher bar for U.S. earnings to deliver

U.S. stocks have slid from their highs as inflation proves sticky and geopolitical tensions rise. We eye whether corporate earnings can keep buoying sentiment. The S&P 500 slid 3% last week on jitters before key tech earnings results and rising bond yields. Geopolitical flare-ups are keeping oil prices elevated. We look to this week’s U.S. PCE release for any signs of acceleration or stubborn services inflation. We see inflation and interest rates staying higher for longer.