Finance

Fresh economic reports show the Producer Price Index rose 1.1% in May, significantly higher than expected and marking the largest 12-month increase since late 2022. The surge in wholesale costs was driven largely by energy prices, which accounted for approximately 80% of the monthly advance.

Brent crude prices dipped toward $92 per barrel on Thursday, paring earlier gains that were triggered by disruptions in the Strait of Hormuz. While geopolitical risks remain high, markets are finding temporary stability as some supply volumes continue to move and strategic reserves are utilized to fill global gaps.

The yield on the 10-year U.S. Treasury note held steady at approximately 4.55% as traders digested inflation data and geopolitical headlines. Financial markets have largely adjusted expectations to reflect that the Federal Reserve is unlikely to cut interest rates for the remainder of the year, with a potential hike now priced in for December.