because the next round of inflation reports is likely to be hard to stop. Gasoline prices, the most widely used commodity in the US, have risen by 35% since the last report. The next downside target for the S&P 500 is $6,100, or down 25% from the January high.

Shares of Warner Bros. have fallen to around $27, some $4 less than the price Paramount agreed to pay, a signal of diminishing probability of the deal getting done. The wide gap between the stock's price and the deal price may be overdone, creating an attractive opportunity for merger arbitrage, with a potential nearly 30% annualized return if the deal closes. Traders believe the market is underestimating the likelihood of the deal closing, with one strategist estimating the true odds of the deal closing are "in the 90%s", compared to the market's current pricing of "in the 80%s". Paramount Skydance shares have plunged by 45% since they won the deal weeks ago. Oops!

Bonds issued by various European countries continued to sell off on Friday, deepening a rout that has been near-continuous since the U.S.-Iran war began. French and German 10-year bond yields hit their highest since 2011 this week, while bonds issued by various other eurozone economies also sold off sharply. Regional officials and investors are anticipating a rise in inflation across Europe as the Iran war continues to push energy prices higher. European recession, here we come.

Shares of LVMH, Hermès, and Ferrari are some of the luxury stocks that have fallen since the start of the Iran War. For investors and luxury companies, the Iran War has highlighted the increasing importance of the Middle East to the global luxury industry and the high-net-worth economy. Dubai in the United Arab Emirates has been the biggest driver of growth in recent years, and the Middle East tensions come at a critical time in the luxury industry.

as war-weary Americans cut back spending. Consumer sentiment index falls to 53.3 in March from 56.6 in February. Twelve-month inflation expectations jump to 3.8% from 3.4%. It’s another nail in the coffin for the US economy.