Finance

Oil prices retreated below $90 per barrel as of June 12, 2026, following signals of a potential peace deal in the Middle East conflict. While energy stocks have been leading the S&P 500 throughout the year due to high global demand, the recent de-escalation has pulled Brent and West Texas Intermediate futures lower, relieving some immediate inflationary pressure.

The Federal Reserve has kept the federal funds rate at a target range of 3.50% to 3.75% heading into its mid-June meeting. Despite this pause, core inflation reaching 3.8% and producer price indexes climbing 6.0% year-over-year have led several policymakers to suggest that rate hikes may still be necessary later in 2026.

The semiconductor industry faced significant turbulence as investors questioned high valuations, resulting in a temporary $1.3 trillion wipeout across major chip makers. While companies like Lam Research raised their long-term forecasts due to AI demand, others like Broadcom saw sell-offs after issuing guidance that failed to meet elevated market expectations.