A hotter-than-expected inflation print sparked a selloff in stocks and bonds and raised the odds of another Fed rate hike. Amol Dhargalkar explains why inflation remains above the Fed’s target and weighs the effects of elevated oil prices, Middle East tensions, a resilient U.S. economy, and the AI boom. He also looks at rising global bond yields, the generational AI CapEx cycle, and why investors should prepare for higher volatility with more proactive risk management.