US consumer inflation hit 4.2% in May, the fastest pace in three years, driven by a 23.5% surge in energy prices from the Iran war. The Consumer Price Index rose 0.5% month-over-month, with gasoline prices jumping 40.5% year-over-year. Real average hourly earnings fell 0.7%, squeezing household budgets. Amazon secured a $17.5 billion loan facility to fund AI infrastructure spending, while traders kept bets on a Fed rate hike by October. The Bank of Canada held rates steady, noting few signs of broad-based energy price spillover.
Demand for SpaceX's upcoming initial public offering is approaching four times oversubscribed, according to a source familiar with the matter, as Elon Musk prepares for what could be the largest tech IPO in history. Meanwhile, US exports rose in April as the Strait of Hormuz closure buoyed demand for American oil. Billionaires' wealth is increasing faster than ever, and the EU ordered Meta to open WhatsApp to rival AI chatbots.
Apple unveiled a major overhaul of Siri powered by Google Gemini at WWDC 2026, turning the voice assistant into an AI companion. The announcement came as Wall Street rebounded from Friday's selloff, led by tech and chipmaker stocks. Apple's new Siri can access device data, perform complex multi-step tasks, and display text card results.
The US labor market added 172,000 jobs in May, beating expectations and showing resilience despite trade tensions and inflation concerns. The unemployment rate held steady, but wage growth still lags behind inflation. The strong report reduces the chance of a Federal Reserve rate cut in the near term.
Billionaire investor Ray Dalio warned that the AI-driven stock market rally represents a bubble that will burst when investors need to sell holdings to raise cash for taxes, debt payments, or redemptions. Dalio said the bubble is not about technology failing but about the conversion of paper wealth into money, and noted that AI company profitability remains unproven.
The OECD warned of a global economic slowdown as the Iran war continues to disrupt oil markets and trade flows. The EU separately warned of stagflation risks from the conflict. In positive news, the U.S. added 172,000 jobs in May, smashing forecasts, while UK house prices fell for a third month. Japan's Nikkei hit a record high above 65,000 on hopes of Strait of Hormuz reopening.
European stock markets closed higher Thursday as oil prices fell on renewed hopes that the Strait of Hormuz may reopen for shipping. The pan-European Stoxx 600 rose 1.2%, led by energy and airline stocks. Brent crude fell below $98 a barrel for the first time in two weeks after reports of progress in US-Iran talks.
The Trump administration announced plans to impose a 25% tariff on all Brazilian imports, citing unfair trade practices by the South American nation. The proposed measure would affect billions of dollars in trade between the two countries, including agricultural products, steel, and manufactured goods. Brazil's government condemned the move and warned of retaliatory measures. The announcement sent Brazilian markets lower and raised concerns about a trade war in the Western Hemisphere.
US stock markets achieved a trifecta of record closes for the first time in 2026, with the S&P 500, Dow Jones, and Nasdaq all hitting new all-time highs. The rally was driven by growing optimism over a potential US-Iran peace deal that could reopen the Strait of Hormuz and lower energy prices. The S&P 500 crossed 6,500 for the first time as investors bet on reduced geopolitical risk and lower oil costs. Markets are also watching Federal Reserve signals on interest rates.
Stock markets across G7 economies are probing fresh heights, with most major indexes reaching record territory. However, the rally masks underlying economic weakness in several regions. The Strait of Hormuz disruption continues to pressure energy prices and fertilizer supplies, raising concerns about global food security.