Finance

U.S. annual inflation accelerated to 3.7% in April, the highest rate in nearly three years, as energy prices surged due to regional conflict. While the Federal Reserve is widely expected to maintain current interest rates at its next meeting, officials and market participants are increasingly wary that persistent price pressures may necessitate a rate hike later this summer.

Brent crude prices saw a downward adjustment toward the end of May, falling to roughly $94 per barrel after previously trading above $110. Analysts have nonetheless upwardly revised their long-term price forecasts for the remainder of 2026, citing a prolonged recovery period for global energy flows following geopolitical disruptions.

The technology sector outperformed the broader market in May, with specialized indices tracking semiconductors jumping over 20%. Major tech firms and hardware manufacturers have seen massive earnings growth, leading several analysts to raise their year-end price targets for the S&P 500 to roughly 8,000.