The US Personal Consumption Expenditures price index surged 4.1% year-over-year in May, the highest reading since April 2023 and the first time above 4% in three years. Core PCE, excluding food and energy, rose 3.4%. The data keeps a Federal Reserve interest rate hike on the table for later this year. Markets now see a September rate increase as likely, though falling oil prices following the US-Iran peace deal may ease inflation pressures in coming months.
Small businesses across the United States say relentless pressure from tariffs and higher energy prices has sapped their resilience, with many struggling to maintain operations. A New York Times survey found that small business owners report shrinking margins as input costs rise faster than they can pass on to customers. The impact has been especially severe in manufacturing and retail sectors, where tariff-driven steel and aluminum price increases have compounded energy cost pressures.
U.S. stock markets closed sharply lower Monday as a broad selloff in semiconductor stocks triggered declines across major indices. The Nasdaq fell 2.4% with Nvidia dropping 5% and AMD losing 4.3% after analysts questioned whether AI infrastructure spending can sustain its current pace. Investors rotated out of tech and into defensive sectors amid growing uncertainty about the AI boom's trajectory.
Former Federal Reserve Chairman Alan Greenspan died Monday at his home at age 100 from complications of Parkinson's disease, his wife Andrea Mitchell announced. Greenspan served as Fed chief for nearly 19 years under four presidents from 1987 to 2006, guiding the US through Black Monday, the dot-com boom and the post-9/11 recession. Hailed as a maestro during his tenure for presiding over a record economic expansion, his legacy was later dimmed by the 2008 financial crisis that erupted after he left office. He called the credit market breakdown a once-in-a-century tsunami.
Small businesses across the US say relentless pressures from tariffs and higher energy prices have sapped their resilience, according to a New York Times report. In Europe, the EU crafted a plan to give industries extra free CO2 permits this year. Steel industry leaders warned about slow progress on green steel projects, and community bankers expressed fear of being sidelined amid crypto-focused deregulation.
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.