[BRIEFING.COM] The S&P 500 (+0.77%) is in second place on Wednesday afternoon, up about 57 points.

Briefly, S&P 500 constituents Coherent (COHR 411.20, +37.19, +9.94%), Akamai Tech (AKAM 159.29, +9.73, +6.51%), and Corning (GLW 211.00, +12.76, +6.44%) dot the top of the standings. COHR caught a BofA target increase this morning to $400 (from $365), AKAM caught a BofA upgrade to Buy (from Neutral) citing $1.8 bln cloud deal and shift toward AI infrastructure platform, while GLW rises as investors rotated back into AI and semiconductor-related infrastructure after a brief selloff, treating Corning as a leveraged beneficiary of ongoing data center and AI capex demand.

Meanwhile, Accenture (ACN 156.35, -13.42, -7.90%) is near the bottom of the average despite a dearth of corporate news.

[BRIEFING.COM] The Nasdaq Composite (+1.23%) is in first place among the major averages, up about 320 points.

Gold futures settled $20 higher (+0.4%) at $4,706.70/oz, as investors reacted to hotter-than-expected U.S. inflation data and ongoing geopolitical uncertainty tied to the Middle East and U.S.-China relations. Safe-haven demand and continued central-bank buying helped support bullion prices even as Treasury yields and the dollar moved higher.

Meanwhile, the U.S. Dollar Index is now +0.2% higher to $98.54.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.26%) is once again today's lagging major average, down 131 points as investors rotate into technology stocks once more.

A look inside the DJIA shows that Salesforce (CRM 165.26, -6.05, -3.53%), Home Depot (HD 300.71, -9.75, -3.14%), and IBM (IBM 213.41, -5.81, -2.65%) are underperforming.

Meanwhile, 3M (MMM 147.68, +4.47, +3.12%) holds firm atop the average.

The DJIA is now +0.04% higher week-to-date.

Elsewhere, U.S. Treasuries hover just below their opening levels after rising off their mid-morning lows alongside some recent relief in the price of oil. Today's early selling briefly lifted yields on the 10-yr note and shorter tenors past their highs from late March, but they have dipped back below those levels. The market could be in for some selling during the last couple hours of trade after the U.S. Treasury completed this week's trifecta of disappointing auctions with a weak sale of $25 bln in 30-yr bonds. The auction drew a high yield of 5.046%, which tailed the when-issued yield by half of a basis point while the bid-to-cover ratio (2.30x) was below average (2.39x). Indirect takedown (66.6%) exceeded the prior 12-auction average (64.2%) making for a silver lining.

[BRIEFING.COM] The S&P 500 (+0.6%), Nasdaq Composite (+1.2%), and DJIA (-0.3%) are mostly higher shortly after midday as a rebound in tech and mega-cap names helps offset mixed action in the broader market. The S&P 500 and Nasdaq Composite have reclaimed yesterday's losses and set new all-time intraday highs.

Action was choppy at the open following the release of the April PPI report. Both headline PPI (1.4%; Briefing.com consensus 0.4%) and core PPI (1.0%; Briefing.com consensus 0.3%) came in hotter than expected, reviving concerns that the Fed may need to keep policy restrictive for longer. Treasuries remain under pressure, with the 10-year note yield up two basis points to 4.48%.

Despite the early volatility, investors quickly stepped in to buy yesterday's dip across semiconductor names. onsemi (ON 115.08, +10.97, +10.54%) is one of the best-performing S&P 500 components, while NVIDIA (NVDA 226.82, +6.04, +2.74%) holds a solid gain after Bloomberg reported that CEO Jensen Huang is joining President Trump on his trip to China.

The PHLX Semiconductor Index is up 2.5%, which keeps the top-weighted information technology sector (+1.0%) near the top of the leaderboard.

Strength in other mega-cap names, such as Alphabet (GOOG 396.40, +12.58, +3.28%) and Tesla (TSLA 449.78, +16.33, +3.77%), supports growth in the communication services (+2.1%) and consumer discretionary (+1.0%) sectors. The Vanguard Mega Cap Growth ETF is up 1.0%, with strength in the market's largest names helping the market-weighted S&P 500 (+0.6%) outperform the S&P 500 Equal Weighted Index (-0.5%).

Elsewhere in the consumer discretionary sector, Ford Motor (F 13.52, +1.53, +12.76%) is the best-performing S&P 500 component after Morgan Stanley issued positive analyst commentary, laying out a bull case for the company's energy storage business that could see $500-$600 million of EBIT potential.

Strength in the broader market is mixed, with six S&P 500 sectors trading lower. Rate-sensitive sectors such as utilities (-1.3%) and real estate (-0.8%) are among the worst performers as treasury yields rise, while the financials sector (-1.0%) also lags, with particular weakness across financial services names.

Despite hotter-than-expected producer inflation data and another rise in Treasury yields, investors continue to show a strong appetite for AI-driven and mega-cap growth names. The rebound across semiconductor stocks and renewed leadership from the market's largest companies have been enough to push the S&P 500 and Nasdaq Composite back to fresh record highs, even as participation beneath the surface remains mixed.

Reviewing today's data:

• Weekly MBA Mortgage Applications 1.7%; Prior -4.4%
• April PPI 1.4% (Briefing.com consensus 0.4%); Prior was revised to 0.7% from 0.5%, April Core PPI 1.0% (Briefing.com consensus 0.3%); Prior was revised to 0.2% from 0.1%
  • The key takeaway from the report is that the surge in producer prices in April wasn't just energy-related. That surge accounted for the bulk of the 2.0% increase in the index for final demand goods, but two-thirds of the "broad-based advance" in the index for final demand services was attributed to a 2.7% increase in margins for final demand trade services.

[BRIEFING.COM] The S&P 500 (+0.4%) and Nasdaq Composite (+1.1%) now sit at new record highs, while the DJIA (-0.4%) lags.

While not an S&P 500 component, Tower Semi (TSEM 253.97, +33.14, +15.01%) 253.97, +33.14, +15.01%) is powering sharply higher after reporting its Q1 results this morning. The company beat EPS expectations, while revenue increased 15.5% year-over-year to $413.6 million. The bigger drivers appear to be its Q2 guidance for revenue of $455 million +/- 5%, which implies 10% sequential growth at the midpoint and would mark a company record, along with new SiPho customer commitments representing $1.3 billion of contracted 2027 revenue tied to next-generation AI data-center architectures.

Meanwhile, Birkenstock Holding Plc (BIRK 34.64, -3.30, -8.71%) is trading lower after reporting its Q2 (Mar) results this morning. The company missed EPS expectations as it grapples with tariff pressure, inflation, and a softer consumer discretionary backdrop, while revenue increased 7.7% year-over-year, or 14% CC, to 618.3 million, roughly in line with expectations. BIRK also reaffirmed its FY26 outlook for EPS of 1.90-2.05 and 13-15% revenue growth in CC.

Cisco (CSCO 100.42, +1.13, +1.14%) is modestly higher ahead of its own earnings release after the close, one of just several S&P 500 companies that will report this week.

[BRIEFING.COM] The major averages remain little changed from previous levels, continuing to trade mixed at midday.

The consumer discretionary sector (+0.6%) now holds a solid gain as leadership from Tesla (TSLA 446.79, +13.34, +3.08%) and Amazon (AMZN 268.42, +2.60, +0.98%) offset broader weakness.

Ford Motor (F 13.14, +1.16, +9.63%) is a notable exception, trading sharply higher after Morgan Stanley issued positive commentary around the company's energy storage business, suggesting it could generate $500 million to $600 million of run-rate EBIT.

[BRIEFING.COM] Stocks are mixed just before midday as a rebound in tech names balances out weakness in the broader market following the release of more discouraging inflation data. The Nasdaq Composite (+0.7%) is outperforming as tech and mega-cap names gain traction, while the S&P 500 (+0.2%) sits modestly higher, and the DJIA (-0.4%) lags.

Semiconductor stocks are making a nice rebound from yesterday's lows, with the PHLX Semiconductor Index (+2.0%) taking back the entirety of yesterday's losses and then some.

Elsewhere, the communication services sector (+1.4%) holds the widest gain due to a solid showing from Alphabet (GOOG 393.86, +10.04, +2.62%). The Vanguard Mega Cap Growth ETF is up 0.5%.

Strength is mixed in the broader market, with six S&P 500 sectors trading lower. Oil is moving higher again today, which pressures select names, though the market has largely shaken off its opening weakness that followed a hotter-than-expected April PPI (1.4%; Briefing.com consensus 0.4%) and Core PPI (1.0%; Briefing.com consensus 0.3%) print.

Outside of the S&P 500, the Russell 2000 (-0.3%) and S&P Mid Cap 400 (-0.3%) are modestly lower, though are also improved from their opening levels.

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.6%), and DJIA (-0.4%) now tilt mostly higher as participation broadens and tech names add to their early gains.

Meanwhile, the financials sector (-0.9%) is moving lower after posting a solid gain yesterday. Major banking names are mostly lower, while financial publishing names such as FactSet (FDS 199.80, -16.12, -7.46%) and S&P Global (SPGI 403.95, -20.22, -4.77%) lag considerably.

[BRIEFING.COM] The Nasdaq Composite (+0.3%) has surfaced above its flatline as several mega-cap stocks begin to chart solid gains, while the S&P 500 remains flat, and the DJIA (-0.3%) lags.

Alphabet (GOOG 390.54, +6.72, +1.75%) is moving higher this morning after a lower showing yesterday. Meta Platforms (META 606.03, +3.03, +0.50%) is also higher, and as a result, the communication services sector (+1.1%) is a standout this morning.

Elsewhere, Tesla (TSLA 440.59, +7.14, +1.65%) holds a nice gain, but broader weakness across the consumer discretionary sector keeps it flat.

The Vanguard Mega Cap Growth ETF is up 0.2%.

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (flat), and DJIA (-0.4%) are mostly lower as investors react to a disappointing April PPI report, while the opening rebound effort across tech names begins to falter.

The April PPI reading showed both headline (1.4%; Briefing.com consensus 0.4%) and core (1.0%; Briefing.com consensus 0.3%) PPI came in hotter-than-expected, further pushing out the market's rate-cut expectations and boosting the odds of a potential hike. Treasuries are lingering near yesterday's highs as a result, with the 10-year note yield up one basis point to 4.47%.

Meanwhile, stocks hava a negative tilt as just four S&P 500 sectors trade higher.

The information technology sector (-0.2%) has seen some choppy action, with weakness across software names weighing against a rebound across its semiconductor components. NVIDIA (NVDA 224.01, +3.23, +1.46%) is a standout after Bloomberg reported CEO Jensen Huang will join President Trump on his trip to China, and the PHLX Semiconductor Index is up 0.9%.

Elsewhere, the defensive consumer staples (+0.9%) and health care (+0.4%) sectors expand upon yesterday's gains, though the utilities sector (-1.5%) is the worst performer this morning.

The stock market is now on track for a modestly higher opening as a hotter-than-expected April PPI report weighs against some dip-buying interest across tech names.

The producer price index for final demand surged 1.4% month-over-month (Briefing.com consensus: 0.4%) following an upwardly revised 0.7% increase (from 0.5%) in March. That was the largest advance since March 2022 and nearly 60% of the increase was attributed to a 1.2% advance in the index for final demand services. Excluding food and energy, the index for final demand jumped 1.0% (Briefing.com consensus: 0.3%) on the heels of an upwardly revised 0.2% increase (from 0.1%) in March.

Here is the headline, though, that will be the topic of conversation. The producer price index for final demand was up 6.0% year-over-year versus 4.3% in March, while the index for final demand, excluding food and energy, was up 5.2% versus 4.0% in March.

The key takeaway from the report is that the surge in producer prices in April wasn't just energy-related. That surge accounted for the bulk of the 2.0% increase in the index for final demand goods, but two-thirds of the "broad-based advance" in the index for final demand services was attributed to a 2.7% increase in margins for final demand trade services.

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note with Japan's Nikkei (+0.8%) settling at a fresh record while South Korea's Kospi (+2.6%) recovered the bulk of its loss from yesterday. President Trump is on his way to China with a team of corporate executives, and he will meet with China's leader on Thursday morning local time. South Korea's cabinet is holding an emergency meeting as Samsung Electronics workers threaten an 18-day strike, starting next Thursday if their compensation demands are not met. Australia is cutting taxes for all taxpayers and implementing long-term reforms in its budget for 2026. South Korea's KDI raised its domestic 2026 growth forecast to 2.5% from 1.9% while the inflation outlook was increased to 2.7% from 2.1%. 

• In economic data:
  • Japan's March adjusted Current Account surplus JPY3.90 trln (expected JPY2.95 trln; last JPY2.70 trln). April Bank Lending 5.4% yr/yr (expected 4.6%; last 4.8%) and April Economy Watchers Current Index 40.8 (expected 41.5; last 42.2)
  • South Korea's April Unemployment Rate 2.8% (last 2.7%)
  • Australia's Q1 Wage Price Index 0.8% qtr/qtr, as expected (last 0.8%); 3.3% yr/yr, as expected (last 3.4%). Q1 Home Loans -4.3% qtr/qtr (last 9.4%)
  • New Zealand's Q2 Inflation Expectations 2.5% qtr/qtr (last 2.4%)

---Equity Markets---

• Japan's Nikkei: +0.8%
• Hong Kong's Hang Seng: +0.2%
• China's Shanghai Composite: +0.7%
• India's Sensex: +0.1%
• South Korea's Kospi: +2.6%
• Australia's ASX All Ordinaries: -0.3%

Major European indices trade mixed. Reports from the U.K. indicate that worker unions are now joining the call for the resignation of Prime Minister Starmer after his party was dealt a humiliating defeat in local elections. Merck reported solid Q1 results and raised its outlook while shipper Hapag-Lloyd reported a loss for Q1. European Central Bank policymaker Rehn said that inflation expectations are still anchored while policymaker Villeroy de Galhau said that the ECB must be ready to respond to knock-on effects.

• In economic data:
  • Eurozone's flash Q1 GDP 0.1% qtr/qtr, as expected (last 0.2%); 0.8% yr/yr, as expected (last 1.2%). Q1 Employment Change 0.1% qtr/qtr (expected 0.0%; last 0.2%); 0.5% yr/yr (last 0.7%). March Industrial Production -2.1% yr/yr (expected -1.7%; last -0.8%)
  • Germany's April WPI 2.0% m/m (expected 1.7%; last 2.7%); 6.3% yr/yr (last 4.1%)
  • France's Q1 Unemployment Rate 8.1% (expected 7.8%; last 7.9%). April CPI 1.0% m/m, as expected (last 1.0%); 2.2% yr/yr, as expected (last 1.7%)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: +0.3%
• U.K.'s FTSE 100: -0.1%
• France's CAC 40: -0.4%
• Italy's FTSE MIB: unch
• Spain's IBEX 35: -0.5%

The S&P 500 futures currently trade in line with fair value.

Just released, the Producer Price Index for final demand increased 1.4% month-over-month in April (Briefing.com consensus: 0.4%) following an upwardly revised 0.7% increase (from 0.5%) in March.

The index for final demand, less foods and energy, rose 1.0% (Briefing.com consensus: 0.3%) following an upwardly revised 0.2% increase (from 0.1%) in March.

These changes left the index for final demand up 6.0% year-over-year, versus 4.3% in March, and the index for final demand, less foods and energy, up 5.2% year-over-year, versus 4.0% in March.

Equity futures point to a higher opening this morning as semiconductor stocks look to rebound from yesterday's slide, trading higher in the premarket. The major averages are coming off a mostly lower finish, though stocks finished well off their session lows as rotational gains across other parts of the market broadened into a dip-buying effort late in the session.

NVIDIA (NVDA 225.65, +4.87, +2.2%) also escaped with a gain and trades higher in the premarket after Bloomberg reported that CEO Jensen Huang will join President Trump on his trip to China. Financial Times reports that President Trump will discuss U.S. arms sales to Taiwan in a meeting with Chinese President Xi during the summit.

Meanwhile, developments around the U.S-Iran conflict echo much of the same sentiments from previous days, with President Trump threatening renewed military action and doubling down on his stance that Iran can not be allowed to have a nuclear weapon.

The market has another key inflation gauge on the calendar this morning in the form of the April PPI (Briefing.com consensus 0.4%) and Core PPI (Briefing.com consensus 0.3%) readings. Yesterday's CPI report showed headline and core inflation in line with month-over-month expectations, though the year-over-year levels remain well above the Fed's 2.0% target, which contributed to some weakness across Treasuries.

Elsewhere on the economic data front, the MBA Mortgage Applications Index for the week ended May 9 increased 1.7%, from a prior decrease of 4.4%.

In corporate news:

• Anthropic is in talks to raise at least $30 billion in its latest financing round, valuing the company at more than $900 billion, according to Bloomberg.
• Alibaba (BABA 133.60, -1.07, -0.8%) reported Q4 (March) results and missed on revenue estimates.
• Nike (NKE 42.38, +0.02, +0.1%) is losing market share in China, according to The Wall Street Journal.
• NVIDIA (NVDA 225.65, +4.87, +2.2%) CEO Jensen Huang Will join President Trump on his trip to China, according to Bloomberg.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the midweek session on a mostly higher note with Japan's Nikkei (+0.8%) settling at a fresh record while South Korea's Kospi (+2.6%) recovered the bulk of its loss from yesterday. Japan's Nikkei: +0.8%, Hong Kong's Hang Seng: +0.2%, China's Shanghai Composite: +0.7%, India's Sensex: +0.1%, South Korea's Kospi: +2.6%, Australia's ASX All Ordinaries: -0.3%.

In news:

• President Trump is on his way to China with a team of corporate executives, and he will meet with China's leader on Thursday morning local time.
• South Korea's cabinet is holding an emergency meeting as Samsung Electronics workers threaten an 18-day strike, starting next Thursday if their compensation demands are not met.
• Australia is cutting taxes for all taxpayers and implementing long-term reforms in its budget for 2026.
• South Korea's KDI raised its domestic 2026 growth forecast to 2.5% from 1.9% while the inflation outlook was increased to 2.7% from 2.1%.

In economic data:

• Japan's March adjusted Current Account surplus JPY3.90 trln (expected JPY2.95 trln; last JPY2.70 trln). April Bank Lending 5.4% yr/yr (expected 4.6%; last 4.8%) and April Economy Watchers Current Index 40.8 (expected 41.5; last 42.2)
• South Korea's April Unemployment Rate 2.8% (last 2.7%)
• Australia's Q1 Wage Price Index 0.8% qtr/qtr, as expected (last 0.8%); 3.3% yr/yr, as expected (last 3.4%). Q1 Home Loans -4.3% qtr/qtr (last 9.4%)
• New Zealand's Q2 Inflation Expectations 2.5% qtr/qtr (last 2.4%)

Major European indices trade on a mostly higher note. STOXX Europe 600: +0.3%, Germany's DAX: +0.6%, U.K.'s FTSE 100: UNCH, France's CAC 40: -0.4%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: -0.2%.

In news:

• Reports from the U.K. indicate that worker unions are now joining the call for the resignation of Prime Minister Starmer after his party was dealt a humiliating defeat in local elections.
• Merck reported solid Q1 results and raised its outlook while shipper Hapag-Lloyd reported a loss for Q1.
• European Central Bank policymaker Rehn said that inflation expectations are still anchored while policymaker Villeroy de Galhau said that the ECB must be ready to respond to knock-on effects.

In economic data:

• Eurozone's flash Q1 GDP 0.1% qtr/qtr, as expected (last 0.2%); 0.8% yr/yr, as expected (last 1.2%). Q1 Employment Change 0.1% qtr/qtr (expected 0.0%; last 0.2%); 0.5% yr/yr (last 0.7%). March Industrial Production -2.1% yr/yr (expected -1.7%; last -0.8%)
• Germany's April WPI 2.0% m/m (expected 1.7%; last 2.7%); 6.3% yr/yr (last 4.1%)
• France's Q1 Unemployment Rate 8.1% (expected 7.8%; last 7.9%). April CPI 1.0% m/m, as expected (last 1.0%); 2.2% yr/yr, as expected (last 1.7%

[BRIEFING.COM] The stock market had an eventful session today, with firm inflation readings, rising Treasury yields, and higher oil prices pressuring tech and select mega-cap names, though solid rotational buying across the broader market helped the major averages finish well above their session lows. The Nasdaq Composite (-0.7%) lagged amid the weakness in growth stocks, while the S&P 500 (-0.2%) finished modestly lower, and strength in the broader market pushed the DJIA (+0.1%) to a slight gain late in the session.

Stocks opened to broad losses following the release of the April CPI report, which showed headline CPI (0.6%; Briefing.com consensus 0.6%) and Core CPI (0.4%; Briefing.com consensus 0.4%) in line with month-over-month expectations, though the year-over-year rates increased to 3.6% for headline CPI and 2.8% for core CPI, both remaining well above the Fed's 2.0% target. The increase in year-over-year inflation put upward pressure on Treasury yields, which was compounded by another surge in oil prices today (crude oil futures settled today's session $4.23 higher (+4.3%) at $102.30 per barrel).

Growth-oriented pockets of the stock market lagged as a result. In particular, the information technology sector (-1.0%) faced considerable pressure across its semiconductor components, which saw the PHLX Semiconductor Index (-3.0%) give back yesterday's gain. Qualcomm (QCOM 210.31, -27.22, -11.46%), Intel (INTC 120.61, -8.83, -6.82%), and Sandisk (SNDK 1451.94, -95.62, -6.18%) were among the worst-performing S&P 500 components after surging in yesterday's session.

However, it is worth noting that both the Semiconductor Index and the broader technology sector roughly halved their losses from session lows as investors bought into this morning's dip during the afternoon.

A late push back into positive territory from NVIDIA (NVDA 220.91, +1.47, +0.67%) added support and helped the Vanguard Mega Cap Growth ETF (-0.3%) finish well off its earlier lows.

There was some lingering weakness in Tesla (TSLA 433.44, -11.56, -2.60%) and Amazon (AMZN 265.82, -3.17, -1.18%) that kept the consumer discretionary sector (-1.0%) firmly lower, but that was the extent of considerable losses at the sector level.

The industrials (-0.4%) and materials (-0.1%) sectors also finished with losses that were tame compared to their earlier levels.

Seven S&P 500 sectors finished higher, which is relatively impressive considering eight sectors traded lower this morning. The health care (+1.9%) and consumer staples (+1.6%) sectors led the advance as investors sought more defensive holdings, padding their gains throughout the session even as the rotational buying broadened and growth stocks improved from their worst levels.

Investors also did some bargain hunting in the financials sector (+0.7%), which remains the worst-performing S&P 500 sector so far this year, while the energy sector (+0.7%) was supported by the increase in oil prices.

Outside of the S&P 500, the Russell 2000 (-1.0%) and S&P Mid Cap 400 (-0.7%) also finished well off their session lows, though both still underperformed as the market displayed a risk-off tone for much of the session.

All told, today's session felt somewhat like two distinct trading days in one. Early selling pressure tied to oil-driven inflation concerns and rising yields sent stocks sharply lower, particularly across growth and semiconductor names, but the tone improved considerably as rotational buying broadened and investors stepped back into many of the market's recent leaders. Despite the early weakness, the S&P 500 and Nasdaq Composite still finished not far below yesterday's record highs, leaving the broader uptrend largely intact and suggesting another rebound in semiconductor stocks could quickly fuel a renewed push into record territory.

U.S. Treasuries saw a continuation of Monday's poor start to the week, resulting in the highest settlement for the 30-year yield in nearly a year while yields on 10s and shorter tenors also finished at levels from last May, though they remained below their intraday highs from late March. The complex extended its losses during the final couple hours of action after the U.S. Treasury followed yesterday's weak 3-year note offering with a poor $42 billion 10-year note sale.

The 2-year note yield settled up five basis points to 4.00%, the 10-year note yield settled up five basis points to 4.46%, and the 30-year note yield settled up five basis points to 5.03%. 

• Russell 2000: +14.5% YTD
• Nasdaq Composite: +12.3% YTD
• S&P Mid Cap 400: +10.8% YTD
• S&P 500: +8.1% YTD
• DJIA: +3.5% YTD

Reviewing today's data:

• April NFIB Small Business Optimism 95.9 (Briefing.com consensus 96.1); Prior 95.8
• April CPI 0.6% (Briefing.com consensus 0.6%); Prior 0.9%, April Core CPI 0.4% (Briefing.com consensus 0.4%); Prior 0.2%
  • The key takeaway from the report is the elevated inflation readings, which are well above the Fed's 2.0% inflation target and a signal not to expect a rate cut anytime soon.
• The Treasury Department reported a $215.0 billion surplus for April (Briefing.com consensus: $202.5 bln), which was $43 billion less than the surplus reported for April 2025. Receipts totaled $837.3 billion, while outlays reached $622.3 billion.
  
  • The key takeaway from the report is the recognition that a healthy level of tax receipts helped fuel a narrowing in the fiscal year-to-date deficit versus the year-ago period. Moreover, the deficit for the 12-month period ending in April is down 16% from the same period a year ago.