Markets Brace for an Inflation Surprise

ImageAndrew here, in London.The anxiety around A.I.

and the soaring stock market is hardly confined to the U.S.But from here, it feels even more acute.

In meetings and conversations with business leaders across London, I’ve been struck by a recurring question: How does this end?There is skepticism about the durability of the A.I.boom, concern about over-exuberant markets and growing unease about America’s relationship with the rest of the world.

Add in the turmoil in the Middle East, and the mood here feels noticeably less euphoric than headlines about markets suggest.Below, we look at the latest market shocks — and at Senator Elizabeth Warren’s new attempt to delay the SpaceX I.P.O., which is still expected to go ahead Friday despite her efforts.ImageInflation jitters For weeks, investors have looked past a fragile cease-fire in the Middle East and pushed stocks to new highs.

That confidence was jolted by Friday’s red-hot jobs report, and could be tested again on Wednesday with the release of new inflation data.Economists expect Wednesday morning’s Consumer Price Index report, due out at 8:30 a.m.Eastern, to show headline inflation hitting 4.2 percent, fueled by rising energy costs.

That would be the highest reading in more than three years.That prospect has chilled global markets, especially as the U.S.

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