Small businesses across the US report mounting pressure from relentless tariffs and higher energy costs, with many saying their resilience has been sapped by months of compounding economic headwinds. The Federal Reserve held interest rates at 3.75% amid ongoing uncertainty over the Iran conflict and its effect on global oil prices. The Fed signaled a potential rate hike if inflation expectations rise further. Meanwhile, the energy regulator FERC dived into a contentious fight over data center grid connections, as soaring electricity demand from AI computing strains the nation's power infrastructure.
Small businesses across the United States are struggling under the weight of layered cost increases driven by Trump-era tariffs, according to a new Federal Reserve survey. 42% of small businesses reported rising costs due to tariffs over the past year, calling it a primary financial challenge. The smallest businesses lost jobs at 4.5 times the rate seen during the 2020 pandemic. With 36 million small businesses accounting for 46% of private sector employment, the ripple effects are being felt across the broader economy as businesses pass costs to consumers.
The Federal Reserve held interest rates steady under new Chair Kevin Warsh, signaling that higher rates may be ahead despite the cooling effect of the US-Iran deal on oil prices. Warsh promised a new vision for the Fed while his colleagues eyed a potential rate hike. Gas prices fell below $4 on average after the Iran deal, but small businesses report relentless pressure from tariffs and higher energy costs. Fox announced a $22 billion acquisition of streaming giant Roku, making it the third-largest player in US television.
The Federal Reserve held US interest rates steady for the fourth time this year, citing uncertainty over the US-Iran deal and persistent inflation that hit a three-year high in May. Meanwhile, SpaceX's valuation ballooned to $2.6 trillion after its blockbuster IPO, briefly surpassing Amazon to become the world's fifth most valuable company. The EV/auto and tech sectors showed mixed results as markets digest the dual forces of monetary policy and AI-driven valuation shifts.
SpaceX's market valuation briefly reached $2.6 trillion on Tuesday, surpassing Amazon before settling back, just days after its historic IPO on Nasdaq. The company's stock debut on June 12 made Elon Musk the world's first trillionaire. In other business news, Pizza Hut was sold for $2.7 billion as it struggles with delivery competition, and analysts warn higher prices for gas, groceries, and flights will outlast the Iran war. Oil prices are plummeting on the US-Iran deal.
SpaceX's blockbuster IPO on the Nasdaq has made Elon Musk the world's first trillionaire, with shares closing up 19% on the first day. The aerospace company raised a record $75 billion in its IPO and now carries a market valuation of $2.1 trillion, making it the sixth-largest US company. Markets are also riding high on news of the US-Iran peace deal.
Global oil prices retreated below $90 a barrel and stock markets rallied Friday after President Trump called off further strikes on Iran and announced a peace deal could be signed as soon as this weekend. Brent crude fell more than 1% to about $89, while Asian and Wall Street markets surged on hopes of an end to the US-Iran conflict. The Strait of Hormuz disruption had kept oil elevated for months.
SpaceX shares surged 19% on their first day of trading on the Nasdaq, pushing the company's market capitalization past $2 trillion and making founder Elon Musk the world's first trillionaire. The company raised $75 billion in its initial public offering, breaking Saudi Aramco's 2019 record for the largest IPO of all time. The stock listing has forced a rethink of Wall Street's tech stock moniker, with analysts now coining 'MANGOS' (Microsoft, Apple, Nvidia, Google, OpenAI/Meta, SpaceX) as the new acronym replacing FAANG.
The Consumer Price Index rose to 4.2% in May 2026, the highest level in three years, driven largely by a 3.9% monthly jump in energy costs amid disruptions from the Iran conflict. The reading has upended market expectations, with CME FedWatch data now showing a 43% probability of a rate hike by December and 2026 rate cuts all but priced out. The OECD reports year-on-year inflation across developed economies hit 4.4% in April, signaling global price pressures.
SpaceX's upcoming initial public offering has drawn more than $70 billion in retail orders, Bloomberg News reported, as investor frenzy builds around what could be the largest US IPO in history. BlackRock seeks to buy at least $5 billion in shares, while crypto exchanges launch pre-IPO derivatives. Separately, US wholesale inflation rose to 6.4% amid Iran-driven oil price increases, and US weekly jobless claims increased marginally. The developments highlight a market torn between AI-driven optimism and geopolitical risks.