Bonds & Stocks
Wall Street traders left stocks and bonds lower as oil climbed, with a key inflation report showing the impacts of higher energy and supply disruptions stemming from the war in Iran. S&P 500 futures fell 0.2%. The yield on 10-year Treasuries advanced two basis points to 4.43%.
Economy
US inflation accelerated in April on rising gasoline and grocery costs, exceeding wage growth in a double-whammy for already strained consumers. The consumer price index rose 3.8% from a year earlier, according to Bureau of Labor Statistics data out Tuesday, the most since 2023. After adjusting for inflation, wages fell for the first time in three years.
World
US President Donald Trump is showing signs of frustration at a lack of progress in negotiations to end the 10-week war with Iran, as the Strait of Hormuz remains all but closed to vital energy supplies and oil prices continue to rise. After rejecting Iran’s latest offer, Trump told reporters the response from Tehran was a “piece of garbage”.