June 26, 2026

PCE inflation in May stood at +4.1% year-over-year, and GDP grew by +2.1% in the first quarter

International

The Personal Consumption Expenditures (PCE) Price Index for May—the Federal Reserve’s preferred measure of inflation—showed a year-over-year change of +4.1%, in line with expectations and above the previous reading of +3.8%, while the monthly change stood at +0.4%, below the estimated +0.5% and in line with the previous reading. The core measure, which excludes food and energy, recorded a year-over-year change of +3.4%, in line with expectations and above the previous +3.3%, while the monthly change was +0.3%, also in line with expectations. In addition, first-quarter Gross Domestic Product (GDP) was released, coming in at +2.1% on an annualized quarterly basis, above the expected +1.6% and the +0.5% from the previous quarter.

The major U.S. stock indices posted mixed results yesterday. The S&P 500 closed unchanged yesterday, while the Nasdaq fell -0.5% and the Dow Jones rose +0.1%. So far this year, the indices have posted gains of +7.5%, +9.1%, and +8.0%, respectively.

As for U.S. Treasury bond yields, the 1-year yield fell from 3.96% to 3.94%, while the 3-year yield moved from 4.14% to 4.12%. Meanwhile, the 10-year yield remained at 4.39%, with no significant changes.

Finally, in the commodities market, price movements were mixed. Gold rose +0.8% to USD 4,030.2 per ounce, while soybeans climbed +1.7% to USD 414.4 per metric ton. In the energy sector, WTI gained +2.4% to USD 72.0, while Brent rose +2.2% to USD 75.4 per barrel.