Overview
- May producer prices rose 1.1% month‑over‑month and 6.5% year‑over‑year, the largest annual gain in more than three years with energy and oil-related costs accounting for roughly 80% of the increase.
- On Thursday President Trump said he had canceled planned strikes on Iran after talks with Iranian leaders, a move that sent stocks sharply higher and pushed oil prices down by roughly 2–3%.
- U.S. equity gains were led by semiconductor and AI-linked stocks while large software firms such as Oracle fell after announcing heavy AI spending and plans to raise about $40 billion.
- Iran claimed it had closed the Strait of Hormuz to commercial traffic but U.S. officials disputed that account, keeping the regional supply risk and oil-market sensitivity at the center of inflation concerns.
- Markets are now focused on the Federal Reserve's June 16–17 meeting under new chair Kevin Warsh as policymakers confront a sudden energy-driven inflation shock that could alter the path for interest rates.