Economy
This week we shift from positive news about the job market to continued negative developments with inflation. The consumer price index (CPI) rose to a three year high in May, clocking in at 4.2% up from 3.8% in April. Rising oil prices were the dominant driver, accounting for more than half of the monthly increase. Core CPI (excluding food and energy prices) rose at a more modest 0.2%, something someone looking for a silver lining could point to as the 487th potential peace deal talks between the US and Iran picked up momentum this week. All eyes and ears will be on the Fed this coming Wednesday as Kevin Warsh will take to the podium for his first press conference as Fed chair. Markets are expecting no change in interest rates resulting from this week's meeting.
Markets
Stocks staged a bit of a bounce back from last week's decline, finishing the week higher 0.65%. There was a lot of buzz around the SpaceX IPO on Friday which successfully debuted with a 19% gain in its first trading day. This was the largest IPO in history with the company now worth more than $2 trillion. Ahead of Friday's higher close, the S&P 500 had a few volatile sessions with the AI stocks trying to find their footing. Apple introduced Siri AI this week, but the stock traded lower, finishing the week with a 3.45% decline. In commodities, oil prices hit a two month low, falling below $85, but the outlook remains unclear as to whether a peace deal with Iran will materialize.
What We're Reading
- The Trouble with "Die with Zero" - Jordan Grumet
- Five Tips to Start Managing Your Aging Parents' Money - NY Times
Have a great weekend.
Dogwood Wealth Management