Wall Street braces for earnings wave and key inflation data

Wall Street is preparing for a significant earnings wave with Ecopetrol, Astronics, Karman Holdings, and GrowGeneration set to report Q1 results today. Mixed expectations surround these earnings. Additionally, April's CPI is projected to rise to 3.56%, influencing Fed policy towards a neutral or tightening stance due to inflationary pressures from tariffs and conflict. Brokerages have increased their 2026 S&P 500 targets, citing strong earnings and AI growth, but caution about risks from high oil prices and narrow market breadth.

Earnings lineup today: Ecopetrol, Astronics, Karman Holdings, and GrowGeneration are set to release Q1 results after the market close, with mixed expectations on beats. Inflation in focus: April CPI is expected to rise to 3.56%, with Fed policy potentially shifting toward neutral or tightening amid tariff and war-driven price pressures. S&P 500 outlook: Brokerages have raised 2026 targets on strong earnings and AI growth, but warn that high oil prices and narrow market breadth pose risks.