Market Update
Japan's Indexes Rebounded Tracking Wall Street Gains, Yen Hovered at Intervention Level
Akira Ito
12 Jun, 2026
Tokyo
Japan's indexes soared in Friday's trading following gains in overnight trading in New York.
The Nikkei 225 Stock Average gained 3.4%, and the broader TOPIX advanced 1.5% amid improving sentiment in the Middle East.
Investors bid up stocks after the U.S. president signaled a possible peace deal with Iran as early as this weekend; however, previous claims of an agreement have failed to live up to market expectations.
For now, the price of Brent crude oil decreased 1.9% to $88.86 a barrel and extended this week's losses to 8% as investors held out for a possible agreement to reopen the Strait of Hormuz for commercial shipping.
The Bank of Japan is widely anticipated to raise rates after the policy meeting next week amid higher inflation and tighter supply conditions for energy products from the Middle East.
The yield on 10-year Japanese government bonds advanced to 2.64% and hovered near multi-decade highs.
Japan's industrial production advanced 0.5% from the previous month in April, according to the Ministry of Economy, Trade, and Industry.
Investors also reviewed the European Central Bank's latest rate actions as policymakers adjusted to higher energy inflation linked to the war in Iran.
The ECB lifted its three benchmark rates by 25 basis points, an increase for the first time since 2023, to between 2.25% and 2.65%.
The central bank also adjusted its overall inflation outlook to 3.0% from the previous estimate of 2.6% and its GDP growth in the eurozone to 0.8% from the previous estimate of 0.9%.
Japan Indexes and Stocks
The Nikkei 225 Stock Average soared 3.4% to 66,385.34, and the broader TOPIX advanced 1.5% to 3,887.83.
For the week, the Nikkei 225 Stock Average gained 3.3%, and the TOPIX advanced 0.8% as investors awaited the Bank of Japan's rate decisions next week.
AI- and semiconductor-linked stocks led the rebound in Friday's trading.
Kioxia Holdings jumped 6%, SoftBank Group gained 5%, Tokyo Electron soared 10%, and Taiyo Yuden advanced 12%.
Banks and financial services providers advanced ahead of the Bank of Japan's rate decision, and the Japanese yen traded at 160.15 against the U.S. dollar.
Sumitomo Mitsui Financial increased 3.2%, Mitsubishi UFJ Financial advanced 1%, and Mizuho Financial gained 3%.
China and Hong Kong Indexes Extended Weekly Advance
Li Chen
12 Jun, 2026
Hong Kong
China's benchmark indexes rebounded and participated in an Asia-wide market rally amid hopes of a longer-lasting peace agreement between the U.S. and Iran.
The Hang Seng Index soared nearly 2%, and the mainland-focused CSI 300 Index gained 1.5% after the U.S. president claimed that a peace deal with Iran is likely to materialize as early as this weekend.
The U.S. president's claim could not be verified, and previous claims of a deal with Iran have turned out to be false dawns over the last two months.
Moreover, Iran is preparing to ramp up its aerial strikes in Jordan, Iraq, Kuwait, and Bahrain.
About 1,500 oil tankers are trapped in the Strait of Hormuz amid dual blockades, and at least 10 million barrels of oil a day are prevented from reaching global markets.
However, for now, benchmark indexes in Japan soared more than 3%, in South Korea surged 8.2%, and in Taiwan jumped nearly 4%.
China Indexes and Stocks
The Hang Seng Index soared 1.9% to 24,700.71, and the mainland-focused CSI 300 Index advanced 1.5% to 4,794.71.
For the week, the Hang Seng Index increased 0.6%, and the CSI 300 Index advanced 1.5% as investors reacted to developments in the Middle East amid escalating tensions.
Semiconductor, metals mining, and AI-linked stocks led gainers in Friday's trading.
Zijin Mining, Zijin Gold, SMIC, Zhongji Innolight, and China Tungsten advanced between 4% and 6%.
Alibaba Group increased 2.9%, Tencent Holdings increased 2%, and Meituan rose 0.1%.
China and Hong Kong Indexes Extended Weekly Advance
Li Chen
12 Jun, 2026
Hong Kong
China's benchmark indexes rebounded and participated in an Asia-wide market rally amid hopes of a longer-lasting peace agreement between the U.S. and Iran.
The Hang Seng Index soared nearly 2%, and the mainland-focused CSI 300 Index gained 1.5% after the U.S. president claimed that a peace deal with Iran is likely to materialize as early as this weekend.
The U.S. president's claim could not be verified, and previous claims of a deal with Iran have turned out to be false dawns over the last two months.
Moreover, Iran is preparing to ramp up its aerial strikes in Jordan, Iraq, Kuwait, and Bahrain.
About 1,500 oil tankers are trapped in the Strait of Hormuz amid dual blockades, and at least 10 million barrels of oil a day are prevented from reaching global markets.
However, for now, benchmark indexes in Japan soared more than 3%, in South Korea surged 8.2%, and in Taiwan jumped nearly 4%.
China Indexes and Stocks
The Hang Seng Index soared 1.9% to 24,700.71, and the mainland-focused CSI 300 Index advanced 1.5% to 4,794.71.
For the week, the Hang Seng Index increased 0.6%, and the CSI 300 Index advanced 1.5% as investors reacted to developments in the Middle East amid escalating tensions.
Semiconductor, metals mining, and AI-linked stocks led gainers in Friday's trading.
Zijin Mining, Zijin Gold, SMIC, Zhongji Innolight, and China Tungsten advanced between 4% and 6%.
Alibaba Group increased 2.9%, Tencent Holdings increased 2%, and Meituan rose 0.1%.
U.S. Indexes Rebounded 1% Overlooking Persistent Tensions in Middle East
Barry Adams
11 Jun, 2026
New York City
Stocks in New York staged a rebound after tensions in the Middle East appeared to recede for now.
The S&P 500 Index increased 0.6%, and the tech-focused Nasdaq Composite advanced nearly 1% as investor sentiment recovered.
The U.S. and Iran halted their latest wave of strikes as two sides struggled to find a common ground and Iran and Israel threatened additional strikes if needed.
The fragile peace in the Middle East is threatened as Iran and the U.S. exchanged fire over the two-day period, and Iran targeted U.S. military sites in Jordan, Iraq, and Kuwait.
Chip stocks rebounded amid a recovery in market sentiment, but caution prevailed in trading in New York ahead of the launch of SpaceX's initial public offering.
Advanced semiconductor and memory makers faced a heavy sell-off over the last five trading sessions, following a rally in the previous nine-week period.
Chipmakers are still up between 70% and 85% in the year so far, as investors continue to chase artificial intelligence-linked stocks.
Sharp Rise In Energy Prices Accelerated PPI In May
On the economic front, producer price inflation accelerated in May, according to the U.S. Bureau of Labor Statistics.
The measure of wholesale inflation accelerated to 6.5% in May from 5.7% in the previous month, driven by a sharp jump in gasoline prices.
On a monthly basis, producer prices on final demand increased 1.15, matching the downwardly revised rate in April, driven by a 10.7% jump in energy prices and 0.6% increase in food prices.
Meanwhile, the core rate of inflation, excluding food and energy, rose 0.4% from the previous month and advanced 4.9% from a year ago.
U.S. Movers
Chewy Inc. dropped 2% to $19.98 after the online pet store operator reported record profit and customer growth in the fiscal first quarter.
Net sales increased 7.7% to $3.4 billion from $3.1 billion, net income advanced to $94.8 million from $62.4 million, and diluted earnings per share rose to 23 cents from 15 cents a year ago.
Net sales per active customer increased 2.4% to $597 from $583, auto-ship customer sales as a percentage of net sales rose to 84.4% from 82.2%, and free cash flow jumped 45.4% to $70.8 million from $48.7 million a year ago.
Active customers in the quarter increased to 3.6% to 21.5 million from 20.8 million in the same period a year ago.
Oracle Corp. dropped 8.5% to $184.63 after the software company reported strong financial results and announced its plans to raise $20 billion through a secondary offering.
Revenue in the fiscal fourth quarter increased 21% to $19.2 billion from $15.9 billion, net income available to shareholders advanced to $4.2 billion from $3.4 billion, and diluted earnings per share rose to $1.45 from $1.19 a year ago.
In the fiscal year 2026, total revenues advanced 17% to $67.4 billion, driven by a 39% rise in cloud services to $34 billion, a 10% gain in the services segment to $5.7 billion, a 5% increase in hardware to $3.1 billion, and a 1% decline in the software segment to $24.5 billion.
The software company said it plans to raise $40 billion in fiscal 2027, including an equity offering of $20 billion.
Oracle in fiscal 2026 raised $43 billion in debt financing and $5 billion through a secondary equity offering.
The company estimated fiscal first quarter revenue to rise between 27% and 29%, and cloud revenue is estimated to grow between 57% and 63% in constant currency and rise between 58% and 64% in the U.S. dollar.
The company also retained its fiscal year revenue guidance of $90 billion and raised its adjusted earnings per share estimate to $8.05, an increase of 18% after adjusting for the one-time transactions of selling the Ampere chip business and Bloom Energy warrants in fiscal year 2026.
U.S. Indexes Rebounded 1% Overlooking Persistent Tensions in Middle East
Barry Adams
11 Jun, 2026
New York City
Stocks in New York staged a rebound after tensions in the Middle East appeared to recede for now.
The S&P 500 Index increased 0.6%, and the tech-focused Nasdaq Composite advanced nearly 1% as investor sentiment recovered.
The U.S. and Iran halted their latest wave of strikes as two sides struggled to find a common ground and Iran and Israel threatened additional strikes if needed.
The fragile peace in the Middle East is threatened as Iran and the U.S. exchanged fire over the two-day period, and Iran targeted U.S. military sites in Jordan, Iraq, and Kuwait.
Chip stocks rebounded amid a recovery in market sentiment, but caution prevailed in trading in New York ahead of the launch of SpaceX's initial public offering.
Advanced semiconductor and memory makers faced a heavy sell-off over the last five trading sessions, following a rally in the previous nine-week period.
Chipmakers are still up between 70% and 85% in the year so far, as investors continue to chase artificial intelligence-linked stocks.
Sharp Rise In Energy Prices Accelerated PPI In May
On the economic front, producer price inflation accelerated in May, according to the U.S. Bureau of Labor Statistics.
The measure of wholesale inflation accelerated to 6.5% in May from 5.7% in the previous month, driven by a sharp jump in gasoline prices.
On a monthly basis, producer prices on final demand increased 1.15, matching the downwardly revised rate in April, driven by a 10.7% jump in energy prices and 0.6% increase in food prices.
Meanwhile, the core rate of inflation, excluding food and energy, rose 0.4% from the previous month and advanced 4.9% from a year ago.
U.S. Movers
Chewy Inc. dropped 2% to $19.98 after the online pet store operator reported record profit and customer growth in the fiscal first quarter.
Net sales increased 7.7% to $3.4 billion from $3.1 billion, net income advanced to $94.8 million from $62.4 million, and diluted earnings per share rose to 23 cents from 15 cents a year ago.
Net sales per active customer increased 2.4% to $597 from $583, auto-ship customer sales as a percentage of net sales rose to 84.4% from 82.2%, and free cash flow jumped 45.4% to $70.8 million from $48.7 million a year ago.
Active customers in the quarter increased to 3.6% to 21.5 million from 20.8 million in the same period a year ago.
Oracle Corp. dropped 8.5% to $184.63 after the software company reported strong financial results and announced its plans to raise $20 billion through a secondary offering.
Revenue in the fiscal fourth quarter increased 21% to $19.2 billion from $15.9 billion, net income available to shareholders advanced to $4.2 billion from $3.4 billion, and diluted earnings per share rose to $1.45 from $1.19 a year ago.
In the fiscal year 2026, total revenues advanced 17% to $67.4 billion, driven by a 39% rise in cloud services to $34 billion, a 10% gain in the services segment to $5.7 billion, a 5% increase in hardware to $3.1 billion, and a 1% decline in the software segment to $24.5 billion.
The software company said it plans to raise $40 billion in fiscal 2027, including an equity offering of $20 billion.
Oracle in fiscal 2026 raised $43 billion in debt financing and $5 billion through a secondary equity offering.
The company estimated fiscal first quarter revenue to rise between 27% and 29%, and cloud revenue is estimated to grow between 57% and 63% in constant currency and rise between 58% and 64% in the U.S. dollar.
The company also retained its fiscal year revenue guidance of $90 billion and raised its adjusted earnings per share estimate to $8.05, an increase of 18% after adjusting for the one-time transactions of selling the Ampere chip business and Bloom Energy warrants in fiscal year 2026.
Japan's Indexes Hovered Near 3-Week Lows, Yen-Level Raised Intervention Prospects
Akira Ito
11 Jun, 2026
Tokyo
Japan's indexes faced renewed downward pressure in early trading but managed to recover the day's losses near the close.
The Nikkei 225 Stock Average and the TOPIX dropped as much as 1.4% before rebounding above the flatline amid renewed violence in the Middle East.
Iran and the U.S. halted their latest wave of airstrikes, stoking fears of prolonged energy shipment disruptions in the Middle East.
About 1,800 oil tankers are blocked in the Strait of Hormuz, preventing about 10 million barrels of crude oil from reaching the global markets.
Technology stocks also remained under pressure amid lingering worries that a global rally in semiconductor and AI-related stocks may be nearing its end.
Japan's semiconductor equipment makers are seen as key players in the global push to adopt artificial intelligence-based applications, and the receding optimism in the sector weighed heavily.
The Bank of Japan is widely expected to lift interest rates higher after a policy meeting next week, as policymakers tackle soaring energy costs linked to the Middle East conflict.
Japan Indexes and Stocks
The Nikkei 225 Stock Average inched higher 0.1% to 64,245.57, and the broader TOPIX fell 0.5% to 3,829.11.
Semiconductor and AI-related stocks led decliners in Tokyo's trading on Thursday.
SoftBank Group, Kioxia Holdings, Tokyo Electron, and Advantest Corp. dropped between 3% and 6%.
Financial stocks also faced selling pressure ahead of the Bank of Japan's rate actions next week.
Sumitomo Mitsui Financial, Mitsubishi UFJ Financial, and Mizuho Financial decreased between 1% and 3%.
Japan's Indexes Hovered Near 3-Week Lows, Yen-Level Raised Intervention Prospects
Akira Ito
11 Jun, 2026
Tokyo
Japan's indexes faced renewed downward pressure in early trading but managed to recover the day's losses near the close.
The Nikkei 225 Stock Average and the TOPIX dropped as much as 1.4% before rebounding above the flatline amid renewed violence in the Middle East.
Iran and the U.S. halted their latest wave of airstrikes, stoking fears of prolonged energy shipment disruptions in the Middle East.
About 1,800 oil tankers are blocked in the Strait of Hormuz, preventing about 10 million barrels of crude oil from reaching the global markets.
Technology stocks also remained under pressure amid lingering worries that a global rally in semiconductor and AI-related stocks may be nearing its end.
Japan's semiconductor equipment makers are seen as key players in the global push to adopt artificial intelligence-based applications, and the receding optimism in the sector weighed heavily.
The Bank of Japan is widely expected to lift interest rates higher after a policy meeting next week, as policymakers tackle soaring energy costs linked to the Middle East conflict.
Japan Indexes and Stocks
The Nikkei 225 Stock Average inched higher 0.1% to 64,245.57, and the broader TOPIX fell 0.5% to 3,829.11.
Semiconductor and AI-related stocks led decliners in Tokyo's trading on Thursday.
SoftBank Group, Kioxia Holdings, Tokyo Electron, and Advantest Corp. dropped between 3% and 6%.
Financial stocks also faced selling pressure ahead of the Bank of Japan's rate actions next week.
Sumitomo Mitsui Financial, Mitsubishi UFJ Financial, and Mizuho Financial decreased between 1% and 3%.
China's Indexes Meandered Amid Rising Middle East Tensions
Li Chen
11 Jun, 2026
Hong Kong
China's indexes turned lower as investors remained cautious amid renewed hostilities in the Middle East.
The Hang Seng Index decreased 1.1%, and the mainland-focused CSI 300 fell 1%.
Chinese stocks remained under pressure after the U.S. and Iran exchanged aerial attacks, and investors feared that the prolonged closure of the Strait of Hormuz was likely to keep energy supply tight.
Benchmark indexes struggled to advance after investors digested inflation reports released on Wednesday. The ongoing supply disruptions in the Middle East and elevated energy prices are contributing to domestic inflation.
Moreover, investors are worried that the ten-week-long rally in artificial intelligence stocks may have stretched valuation too far and are uncertain about the sustainability of the elevated level of investment in artificial infrastructure.
China Indexes and Stocks
The Hang Seng Index decreased 1.1% to 24,136.17, and the mainland-focused CSI 300 Index fell 1% to 4,697.77.
Eoptolink tumbled 30% to ¥538.43 after the optical components maker announced its plans to list its shares on the Hong Kong Stock Exchange.
Metal mining companies turned lower after copper, gold, silver, and platinum prices eased for the second consecutive week.
Zijin Mining Group decreased 2.8%, Zijin Gold International dropped 3%, and Aluminum Corporation of China edged up 1.4%.
China's Indexes Meandered Amid Rising Tensions
Li Chen
11 Jun, 2026
Hong Kong
China's indexes turned lower as investors remained cautious amid renewed hostilities in the Middle East.
The Hang Seng Index decreased 1.1%, and the mainland-focused CSI 300 fell 1%.
Chinese stocks remained under pressure after the U.S. and Iran exchanged aerial attacks, and investors feared that the prolonged closure of the Strait of Hormuz was likely to keep energy supply tight.
Benchmark indexes struggled to advance after investors digested inflation reports released on Wednesday. The ongoing supply disruptions in the Middle East and elevated energy prices are contributing to domestic inflation.
Moreover, investors are worried that the ten-week-long rally in artificial intelligence stocks may have stretched valuation too far and are uncertain about the sustainability of the elevated level of investment in artificial infrastructure.
China Indexes and Stocks
The Hang Seng Index decreased 1.1% to 24,136.17, and the mainland-focused CSI 300 Index fell 1% to 4,697.77.
Eoptolink tumbled 30% to ¥538.43 after the optical components maker announced its plans to list its shares on the Hong Kong Stock Exchange.
Metal mining companies turned lower after copper, gold, silver, and platinum prices eased for the second consecutive week.
Zijin Mining Group decreased 2.8%, Zijin Gold International dropped 3%, and Aluminum Corporation of China edged up 1.4%.
U.S. Movers: Cracker Barrel, Designer Brands, Vail Resorts
Scott Peters
10 Jun, 2026
New York City
Vail Resorts decreased 3.4% to $131.99 after the luxury ski resort operator lowered its annual adjusted operating earnings outlook.
Vail Resorts lowered its annual estimate to between $739 million and $761 million compared to the previous estimate between $745 million and $775 million.
The company blamed challenging weather conditions for the reduced demand at its resorts in the western U.S. that persisted in the third quarter.
Revenue in the fiscal third quarter ending in April decreased to $1.20 billion from $1.3 billion, net income dropped to $340 million from $411.3 million, and diluted earnings per share fell to $8.81 from $10.46 a year ago.
Designer Brands decreased 1.1% to $8.81 after the shoe retailer reported its financial results for the fiscal first quarter ending on May 2.
Consolidated net sales increased 1.4% to $696.4 million from $686.9 million, net income attributable to shareholders swung to a profit of $1.2 million from a loss of $17.8 million, and diluted earnings per share were 2 cents compared to a loss of 37 cents a year ago.
Total comparable sales decreased 1.1%, better than a 7.8% decrease in the period a year ago, as the retail store network continued to struggle in attracting customers.
The retailer estimated full-year fiscal 2026 revenue to increase by plus or minus 1% and diluted earnings per share to range between 28 cents and 38 cents.
Cracker Barrel jumped 9% to $39.49 after the Southern country-style restaurant chain operator reported financial results for its fiscal third quarter ending on May 1 and lifted its full-year outlook.
Total revenue decreased 2.9% to $797.4 million from $821.2 million, net income in the quarter rose to $42.8 million from $12.6 million, and diluted earnings per share advanced to $1.90 from 56 cents a year ago.
The latest quarter's net income includes a $47.4 million benefit related to a settlement agreement regarding interchange fee litigation.
Comparable store restaurant sales decreased 2.6%, and comparable store retail sales declined 1.8% from a year ago, respectively.
The company's Board of Directors declared a quarterly cash dividend of 25 cents payable on August 12 to shareholders on record on July 17.
The company revised its fiscal 2026 total revenue estimate to a new range between $3.27 billion and $3.30 billion, up from the previous estimated range of $3.24 billion to $3.27 billion.
The restaurant chain operator also revised higher its adjusted operating income range to between $120 million and $125 million from the previous guidance of between $85 million and $100 million.
However, the company retained its full-year capital expenditure estimate between $105 million and $115 million.
U.S. Movers: Cracker Barrel, Designer Brands, Vail Resorts
Scott Peters
10 Jun, 2026
New York City
Vail Resorts decreased 3.4% to $131.99 after the luxury ski resort operator lowered its annual adjusted operating earnings outlook.
Vail Resorts lowered its annual estimate to between $739 million and $761 million compared to the previous estimate between $745 million and $775 million.
The company blamed challenging weather conditions for the reduced demand at its resorts in the western U.S. that persisted in the third quarter.
Revenue in the fiscal third quarter ending in April decreased to $1.20 billion from $1.3 billion, net income dropped to $340 million from $411.3 million, and diluted earnings per share fell to $8.81 from $10.46 a year ago.
Designer Brands decreased 1.1% to $8.81 after the shoe retailer reported its financial results for the fiscal first quarter ending on May 2.
Consolidated net sales increased 1.4% to $696.4 million from $686.9 million, net income attributable to shareholders swung to a profit of $1.2 million from a loss of $17.8 million, and diluted earnings per share were 2 cents compared to a loss of 37 cents a year ago.
Total comparable sales decreased 1.1%, better than a 7.8% decrease in the period a year ago, as the retail store network continued to struggle in attracting customers.
The retailer estimated full-year fiscal 2026 revenue to increase by plus or minus 1% and diluted earnings per share to range between 28 cents and 38 cents.
Cracker Barrel jumped 9% to $39.49 after the Southern country-style restaurant chain operator reported financial results for its fiscal third quarter ending on May 1 and lifted its full-year outlook.
Total revenue decreased 2.9% to $797.4 million from $821.2 million, net income in the quarter rose to $42.8 million from $12.6 million, and diluted earnings per share advanced to $1.90 from 56 cents a year ago.
The latest quarter's net income includes a $47.4 million benefit related to a settlement agreement regarding interchange fee litigation.
Comparable store restaurant sales decreased 2.6%, and comparable store retail sales declined 1.8% from a year ago, respectively.
The company's Board of Directors declared a quarterly cash dividend of 25 cents payable on August 12 to shareholders on record on July 17.
The company revised its fiscal 2026 total revenue estimate to a new range between $3.27 billion and $3.30 billion, up from the previous estimated range of $3.24 billion to $3.27 billion.
The restaurant chain operator also revised higher its adjusted operating income range to between $120 million and $125 million from the previous guidance of between $85 million and $100 million.
However, the company retained its full-year capital expenditure estimate between $105 million and $115 million.
Steep AI Valuations and Escalating Middle East Tensions Weighed on Market Sentiment
Barry Adams
10 Jun, 2026
New York City
Wall Street indexes turned lower for the second session in a row on Wednesday amid escalating tensions in the Middle East.
The S&P 500 index decreased 0.7%, and the tech-dominated Nasdaq Composite fell 1.2% amid worries that energy prices are likely to remain elevated because of the prolonged shutdown in the Strait of Hormuz.
The price of a barrel of West Texas Intermediate crude oil turned volatile and jumped as high as 1% before settling down 0.08% to $88.12.
The U.S. launched air strikes in Iran following the "yesterday's downing of a U.S. Army Apache helicopter by Iranian forces," said the U.S. Central Command.
So far, Iran has directly not claimed responsibility for shooting down the U.S. helicopter, but the escalating tensions in the Middle East have stoked fears that Iran could ramp up its attacks on the U.S. military bases in Kuwait, Jordan, the UAE, and Bahrain.
Semiconductor and memory stocks led decliners following Tuesday's market rout as investors question rapid price increases over the last ten weeks in artificial intelligence stocks.
Nvidia, Intel, AMD, Marvell Technology, Broadcom, SanDisk, Micron Technology, and Wolfspeed dropped between 2% and 6%.
Consumer Inflation Stayed Above Fed's Target Rate for Fifth Consecutive Year
The annual rate of consumer price inflation accelerated in May amid a persistent rise in energy prices.
CPI accelerated to 4.2% in May from 3.8% in April, representing the third monthly acceleration in overall inflation, according to the U.S. Bureau of Labor Statistics.
The energy costs jumped to 23.5% in May from 17.9%, and gasoline costs soared 41% from the 28.4% rise in the previous month, respectively.
In addition, shelter inflation accelerated to 3.4% from 3.3%, and food prices advanced to 3.1% from 2.3% in the previous month, respectively.
The core rate of inflation, which excludes volatile food and energy prices, accelerated to 2.9% in May from 2.8% in April and stayed above the Federal Reserve's target rate of 2% for the fifth year in a row.
The core rate of inflation was below the Fed's target rate last time in February 2021 and surged as high as 9.1% in June 2022.
U.S. Movers
Cracker Barrel jumped 9% to $39.49 after the Southern country-style restaurant chain operator reported financial results for its fiscal third quarter ending on May 1 and lifted its full-year outlook.
Total revenue decreased 2.9% to $797.4 million from $821.2 million, net income in the quarter rose to $42.8 million from $12.6 million, and diluted earnings per share advanced to $1.90 from 56 cents a year ago.
The latest quarter's net income includes a $47.4 million benefit related to a settlement agreement regarding interchange fee litigation.
Comparable store restaurant sales decreased 2.6%, and comparable store retail sales declined 1.8% from a year ago, respectively.
The company's Board of Directors declared a quarterly cash dividend of 25 cents payable on August 12 to shareholders on record on July 17.
The company revised its fiscal 2026 total revenue estimate to a new range between $3.27 billion and $3.30 billion, up from the previous estimated range of $3.24 billion to $3.27 billion.
The restaurant chain operator also revised higher its adjusted operating income range to between $120 million and $125 million from the previous guidance of between $85 million and $100 million.
However, the company retained its full-year capital expenditure estimate between $105 million and $115 million.