Wall Street is bracing for increased volatility as new government proposals and corporate earnings reports create a shifting landscape for investors. On Monday, the Securities and Exchange Commission (SEC) unveiled draft rules aimed at tightening oversight on corporate share buybacks and enhancing transparency around insider trading activities. The proposed regulations, which could be finalized later this year, require companies to disclose buyback plans in advance and report insider transactions within 24 hours. SEC Chair Gary Gensler remarked, "Greater transparency around buybacks and insider trades will empower investors and promote fairer markets." However, critics argue that the new rules could discourage companies from returning capital to shareholders, leading to reduced market liquidity. Meanwhile, major tech companies reported mixed earnings this week, adding to investor uncertainty. While some firms like Meta Platforms posted better-than-expected profits, others like Alphabet fell short of revenue forecasts, citing weaker digital advertising demand. Financial sector earnings also painted a mixed picture, with JPMorgan Chase outperforming expectations while regional banks reported shrinking margins amid higher interest rates. Compounding the uncertainty, a bipartisan group of senators introduced legislation aimed at restricting members of Congress and senior executive branch officials from trading individual stocks. The “Bipartisan Restoring Trust in Public Servants Act,” if passed, could lead to broader calls for transparency among public officials and potentially impact sectors historically favored by policymakers. Market analysts caution that the combination of regulatory tightening, uneven earnings, and political developments could lead to greater stock price volatility through the summer. "Investors should prepare for choppy waters ahead," said Fiona McAllister, chief strategist at Horizon Capital. "Policy changes and earnings uncertainty are a potent mix that markets don’t digest easily." Major indices reflected the tension, with the S&P 500 closing down 0.8% on Tuesday, and the Nasdaq Composite falling 1.2%. Traders are now closely watching upcoming Federal Reserve comments and additional earnings releases later in the week for further signals.