Bonds & Stocks
A relatively tame inflation report brought a degree of relief to Wall Street, but failed to lift stocks amid heightened geopolitical tensions that are keeping energy costs elevated and threatening further price pressures. The S&P 500 fell 0.6%. The yield on 10-year Treasuries was little changed at 4.52%.
Economy
US inflation accelerated in May to the fastest pace in more than three years as the Iran war pushed up energy prices, outstripping Americans’ pay gains. The consumer price index climbed 0.5% from April and 4.2% from a year earlier, the most since early 2023, according to Bureau of Labor Statistics data.
World
The US and Iran exchanged strikes overnight, jolting their two-month-old truce and endangering talks aimed at securing lasting peace in the Middle East.President Donald Trump said he retaliated against the Islamic Republic for shooting down an American Apache helicopter near the Strait of Hormuz. Tehran didn’t confirm shooting down the aircraft and said it was reconsidering whether to persist with negotiations in light of the US attacks.