In the last two weeks, markets have navigated a mix of geopolitical conflict, cautious monetary policy signals, and evolving consumer and corporate trends—yet still pushed into record-high territory. As central banks weigh their next moves and global tensions persist, signs of economic resilience continue to surface. Let’s dive in!

• Israel-Iran Tensions: A fragile peace has emerged after Israel’s strike and Iran’s limited response, easing immediate fears of escalation. Life in Israel is returning to normal, and there’s cautious optimism that renewed diplomacy could support both regional stability and progress on hostage negotiations.
  
• Housing Market Resilience: Pending home sales rose 1.8% in May and 1.1% year over year, indicating modest momentum in buyer activity. While higher mortgage rates continue to challenge affordability, steady job gains and wage growth are offering some support.
  
• Fed Holds Steady: The Federal Reserve kept rates unchanged at 4.25%–4.5% and signaled two potential cuts later in 2025, while projecting slower growth and slightly higher inflation. Policymakers emphasized caution as they await more clarity on economic trends.
  

• State Labor Update: In May, unemployment rates were unchanged in 45 states and D.C., with only minor shifts elsewhere. South Dakota posted the lowest rate at 1.8%, while D.C. had the highest at 5.9%. Over the past year, 18 states added jobs—led by Texas (+213,300), Florida (+148,700), and New York (+100,400)—signaling broad but cautious labor stability.
  
• Market All-Time Highs: The S&P 500 reached a record intraday high gaining over 5% in the past month and 20% since an April low. Easing tariffs, stable inflation, and reduced geopolitical tensions have supported continued investor optimism.
  
• BNPL Credit Reporting: FICO will soon begin factoring Buy Now, Pay Later (BNPL) loans into credit scores, giving lenders new insight into consumers’ borrowing behavior. While some see this as a step toward accountability, it may reduce one of BNPL’s key appeals: avoiding impact on credit.
  

• AI-Fueled Energy Push: Palantir is partnering with The Nuclear Company to co-develop AI-driven software that accelerates nuclear power plant construction. This move supports rising energy needs from AI data centers and aligns with national goals for nuclear expansion.
  
• Nestlé Reformulates Products: Nestlé will remove artificial colors from all U.S. food and beverages by mid-2026, aligning with growing consumer demand and recent legislative efforts. The move follows similar pledges by Kraft Heinz and General Mills as pressure mounts for cleaner ingredient labels.
  
• Zillow Rule Controversy: Compass is suing Zillow, alleging anti-competitive practices tied to a new rule requiring home listings to appear on Zillow within 24 hours of being publicly marketed. The case could reshape how listings are shared online, with implications for consumer access, agent strategies, and competition in digital real estate.
  

In the next two weeks, markets will focus on key economic data releases including the June Consumer Price Index (CPI) and Producer Price Index (PPI), which could shape expectations for the Fed’s next policy moves. Geopolitically, attention will remain on Middle East developments and trade discussions, while earnings season begins to pick up, offering fresh insight into corporate performance.

Footnotes

• Israel-Iran ceasefire holds, offering hope, but also uncertainty as Iran threatens to accelerate nuclear work (CBS)
• US pending home sales rise more than expected in May (YF)
• Fed holds key rate steady, still sees two more cuts this year (CNBC)
• State Employment and Unemployment Summary (BLS)
• S&P 500 hits record high as stock market surges (ABC)
• Buy now, pay later plans will soon impact your credit score—what you need to know (CNBC)
• Palantir Strikes Nuclear Deal as AI Power Demand Surges (YF)
• Nestle says it will stop using artificial dyes in U.S. foods, beverages by mid-2026 (CBS)
• Compass sues Zillow as fight over privately marketed listings heats up (CNN)