Finance

Energy prices fell sharply as reports emerged of a potential 60-day ceasefire and progress toward a U.S.-Iran peace agreement. Brent crude futures dropped more than 3% to settle near $87 a barrel, providing a significant tailwind for the broader stock market. However, political rhetoric remained cautious, with official statements suggesting that a final signature on the deal has not yet been secured.

U.S. Treasury yields experienced a cooling period, with the 10-year note finishing near 4.48% after previously climbing on persistent inflation fears. The decline in energy costs helped offset concerns raised by recent Producer Price Index data, which showed headline inflation reaching multi-year highs. Market participants are now closely monitoring the upcoming FOMC meeting for signals on potential interest rate adjustments later this year.

Recent economic reports highlight a stabilizing but softening labor market, with nonfarm payrolls adding 172,000 jobs in May 2026. While employment remains resilient in sectors like hospitality and healthcare, real disposable personal income has seen steady erosion over the past several months. This strain on household purchasing power is leading to more fragile underlying demand in services, even as nominal wage growth continues.