Iran's Macro Wild Card: Global Stocks See Headwinds Amid Sticky Inflation

• Global bond sell-off and higher yields are creating headwinds for stocks, lowering discounted cash flow valuations.
• The US-Iran conflict is a macro wild card, with potential for sustained inflation due to higher energy prices.
• China's economy shows domestic weakness (retail sales worst since Dec 2022) but strong tech exports, though higher energy prices could eventually curb production.

Michelle Gibley discusses global market headwinds, including a bond sell-off, rising inflation, and the ongoing US-Iran conflict. She notes that while AI-led earnings have provided some offset, higher yields and potential global growth slowdowns, particularly in China due to domestic weakness and energy prices, pose significant risks to stock valuations.