Elevated market volatility persisted last week as sentiment was pressured by continued tariff uncertainty, AI-related disruption concerns, and renewed anxiety around private credit. U.S. equities traded in a choppy, sideways pattern, with major indices finishing modestly lower despite generally strong earnings results and a healthy macro backdrop. Inflation fears resurfaced after a hotter than expected Producer Price Index report. The second upward surprise in inflation reports, with PCE topping forecasts last week, raised concerns that price pressures may be re-accelerating. At the same time, safe-haven demand drove a rally in Treasuries, pushing the 10-year yield below the key 4% threshold by week’s end. AI remained a dominant theme, with strong earnings from NVIDIA confirming robust infrastructure demand, though the stock sold off as investors questioned the pace and returns of AI spending. Software stocks showed signs of stabilization late in the week following earnings from Salesforce and Snowflake. Overall, markets reflected elevated uncertainty rather than deteriorating fundamentals, with volatility remaining high and leadership continuing to rotate across sectors.