A look back
- U.S. equities were slightly up over the last week as investors gained optimism that a durable peace deal with Iran is in the process of being finalized. The S&P 500 finished up 0.66%, while international developed markets increased 0.97%, and emerging markets marginally up 0.02%.
- U.S. Treasury yields also fell on the Middle East optimism. The 2-year and 10-year yields finished at 4.08% and 4.47%, respectively. Crude oil prices saw similar declines, finishing the week at $84.88
- The Consumer Price Index (CPI) rose 0.5% in May, with the annual rate rising to 4.2%, driven by energy costs, which have soared 23.5% year over year. Core CPI, which excludes food and energy, rose 0.2%, and increased 2.8% year over year basis.
A look ahead
- Over the weekend, the White House had announced that a deal with Iran to reopen the Strait of Hormuz is likely to be formalized and signed this week. Investors will be watching for improved shipping traffic out of the Middle East in the coming months
- The Kevin Warsh era kicks off this week, as the new Chairman presides over his first policy meeting this week. Markets are expecting the central bank to keep interest rates unchanged and are interested to hear Warsh’s first post-meeting press conference as FOMC Chair on Wednesday.
- Economic releases: FOMC Meeting, Housing Starts, Industrial production, Retail sales
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