Futures tracking US equities were mixed for a second session as a selloff for chip stocks contrasted with gains in traditional sectors of the economy. Contracts for the S&P 500 inched lower and the Nasdaq 100 fell 1%, while the Dow edged higher to a fresh record. The lack of progress between the US and Iran consolidated expectations that energy supply will remain tight for longer as domestic fuel inventories dwindle, maintaining inflationary risks. Still, the incoming jobs report is expected to continue reflecting a strong labor market. Banks and defensive sectors were higher to support the Dow, with Visa and J&J up more than 2% premarket. In turn, Broadcom was 2% down to extend the 13% slump from last session after missing guidance estimates, driving broader AI infrastructure stocks to drop. Micron slumped 4% and Nvidia lost 2%. Meanwhile, S&P Dow Jones denied the fast entry for SpaceX into its indices ahead of its IPO next week, expected to be the largest in history.

WTI crude oil futures held near $93 per barrel on Friday after falling 3.1% in the previous session, as investors looked for signs of progress in US-Iran negotiations while uncertainty persisted over a ceasefire between Israel and Lebanon. President Donald Trump said talks with Tehran were progressing well, despite Iran-backed Hezbollah rejecting a US-brokered ceasefire proposal. Oil prices remain more than 6% higher for the week after renewed clashes between US and Iranian forces dampened hopes for a deal that could restore flows through the Strait of Hormuz. Trump has since struck a more optimistic tone, saying the strait could reopen quickly if Iran agrees to a memorandum of understanding to halt hostilities. However, little concrete progress has emerged, with Israel’s continued operations in Lebanon remaining a key obstacle. Elsewhere, loadings at Oman’s Mina Al Fahal export terminal were temporarily delayed following an explosion, although operations later resumed.

The Eurozone economy shrank by 0.2% in the first quarter of 2026, revised down from an initially reported 0.1% growth, according to final EUROSTAT data. This marks the first contraction since Q4 2022 and the sharpest decline since mid-2020, driven by a significant downward revision to Ireland’s GDP, which plummeted 12.1% in Q1, and a smaller contraction in France (-0.1%). Among major Eurozone economies, Spain led with 0.6% growth, while Germany and Italy each expanded by 0.3%, and the Netherlands grew by 0.1%. The weak performance reflects pressures from tight energy supplies, rising inflation tied to the Middle East conflict, and the European Central Bank’s preparations for monetary tightening. On the expenditure side, net trade and inventory changes subtracted 0.3 and 0.1 percentage points from GDP, respectively, while fixed investment fell by 0.3%. Household consumption and government spending also slowed, growing by just 0.2% and 0.5%.

The FAO Food Price Index edged down 0.2% to 130.8 points in May 2026 from an upwardly revised 131 points in April which was the highest reading since January 2023. Prices of cereals rose 2.6% reaching the highest level since June 2024, reflecting higher prices across all major cereals. World wheat prices rose for the fourth consecutive month, supported by smaller-than-expected harvests in major exporters, including the US, while higher fuel and fertilizer costs added further upward pressure globally. In addition, sugar prices soared 7.5% mainly driven by concerns over an anticipated tightening of global sugar supplies in the coming months. Meat costs edged up 0.1% with higher quotations for bovine and ovine meat. In contrast, dairy prices decreased 0.5% to reach the lowest level since January 2024 and vegetable oils cost tumbled 4.6% mainly driven by lower prices of palm and soy oils, which more than offset increases in rapeseed oil and sunflower oil prices.

The annual inflation rate rose to 32.61% in May 2026 from 32.37% in the previous month, exceeding market expectations of 32.5%. It marked the highest reading since October 2025, as prices continued to be weighed down by the energy shock stemming from Middle East tensions. Reflecting heightened uncertainty, the central bank recently suspended its year-end inflation forecast range, citing "a period of high uncertainty," while maintaining a year-end inflation target of 24%. The central bank also tightened liquidity conditions by suspending funding through its main policy rate and shifting to the more expensive overnight lending rate of 40%. Price pressures intensified for food and non-alcoholic beverages (34.86% vs 34.55% in April), while inflation eased slightly for housing (45.59% vs 46.6%) and transport (34.29% vs 35.06%). On a monthly basis, consumer prices rose by 1.71%, slowing sharply from 4.18% in April and marking the weakest monthly increase since December 2025.

The Reserve Bank of India (RBI) kept its key repo rate unchanged at 5.25% for the third consecutive meeting in June and maintained a neutral stance amid a weakening rupee. The decision was in line with market expectations, as the conflict in the Middle East threatened GDP growth and fueled inflationary pressures. On the economic outlook, the RBI lowered its GDP growth forecast for FY2026/27 to 6.6% from its earlier estimate of 6.9%. GDP is projected to grow by 6.6% in the first quarter of the fiscal year, followed by 6.3% in the second quarter and 6.5% and 6.8% in Q3 and Q4, respectively. Meanwhile, inflation is projected to average 5.1%, up from the earlier estimate of 4.6%, mainly driven by higher LPG, base metal, plastic, and rubber prices. Inflation is forecast at 4.2% in Q1, 5.1% in Q2, and 5.9% in both Q3 and Q4. Core inflation is projected at 4.7%. The central bank also kept the SDF rate at 5.0% and the MSF rate at 5.50%.