U.S. producer prices rose 2.2% year-over-year in May, the highest since late 2020, amid Middle East energy cost pressures.
MSCI’s global equity index edged higher, recovering some losses from the previous session, as investors weighed stronger-than-expected U.S. inflation data and escalating Middle East tensions. The dollar strengthened while oil futures climbed, despite renewed hostilities between the U.S. and Iran threatening regional stability.
U.S. producer prices increased 0.5% in May, exceeding forecasts, with the annual rate rising to 2.2%—the highest since November 2020. Energy costs surged amid the conflict, while unemployment claims ticked up slightly but remained near historic lows, signaling persistent labor market tightness.
Wall Street indexes traded modestly higher after two days of declines, though caution prevailed. Analysts noted a mix of optimism over economic resilience and concern over geopolitical risks, with no clear near-term resolution to the U.S.-Iran standoff.