Finance

The Producer Price Index jumped 6.5% annually in May, exceeding analyst expectations and highlighting persistent inflationary pressures. While core wholesale prices rose more modestly, the overall surge was heavily influenced by high energy costs stemming from the ongoing conflict in the Middle East. This data follows a hot consumer inflation report, reinforcing expectations that the Federal Reserve will hold interest rates steady at its upcoming meeting.

Semiconductor and AI-related stocks spearheaded Thursday's market recovery, rebounding from recent pressure as investors prepared for the historic SpaceX IPO. Some analysts suggested that the earlier tech rout may have been partly due to investors liquidating other holdings to set aside capital for the $1.75 trillion valuation offering. Despite the broader rebound, some software giants like Oracle faced pressure after reporting record results that nonetheless missed high investor expectations.

Crude oil prices saw significant volatility, initially falling on news of a potential peace plan before swinging on renewed threats of U.S. intervention. West Texas Intermediate crude traded near $90 per barrel as traders weighed the possibility of disruptions in the Strait of Hormuz against hopes for stabilized global supply. While many sectors rallied on the easing of immediate strike threats, the energy sector lagged behind as crude prices pulled back from recent highs.