Bonds & Stocks
Renewed attacks in the Persian Gulf lifted oil prices while keeping a lid on stocks and bonds amid mounting concern about the economic fallout of the war-driven spike in energy costs. The S&P 500 was little changed. The yield on 10-year Treasuries was little changed at 4.48%.
Economy
US consumer spending edged up in April, with annual inflation accelerating to the highest level since 2023 as the Iran war drove up energy prices. Inflation-adjusted consumer spending increased just 0.1% last month, while the personal consumption expenditures price index rose 3.8% from a year earlier.
World
The US struck Iranian military targets for the second time this week and Kuwait said it responded to missile and drone threats, highlighting the fragility of the ceasefire and the challenge of forging a peace accord that would restore global energy flows.