The recent elections in the US and France, as well as the upcoming earnings season and Federal Reserve's next steps, have impacted global markets. In the US, stocks are hovering near all-time highs, with the S&P 500 potentially reaching its 35th record this year. US consumers' near-term inflation expectations have decreased, while the earnings outlook and economy are expected to support higher valuations. The start of the earnings season is anticipated to bring about some market volatility, but the market is likely to rebound once companies resume buybacks. Additionally, various companies, such as Nvidia Corp. and Boeing Co., are making significant moves, including raising targets and conducting inspections. In the bond market, Broadcom Inc. is borrowing $5 billion, and Treasury 10-year yields remain relatively stable. However, Bitcoin has experienced a decline due to concerns about potential token sales. In France, the left-wing New Popular Front secured the most seats in the parliamentary elections, leading to a hung parliament and uncertainty in the markets. The possibility of "fiscally aggressive" spending and taxation plans by the New Popular Front has raised suspicion among investors, while the prospect of political paralysis for the next 12 months seems likely. Overall, the political outcomes in both the US and France have contributed to market volatility and uncertainty, impacting stock and bond markets in both countries.
