The price of oil declined further in response to increased flows of oil through the Strait of Hormuz and, primarily, optimism that a peace deal with Iran was close at hand. That also allowed financial markets to look past the May CPI headline number and focus on the still tame “core Inflation” (ex-food and energy).  Overseas, the economic data remained relatively the same. The S&P 500 eked out a gain of 0.65% on the back of a fierce rally in manufacturers of chip production equipment. Foreign Developed markets were up 0.97% and Emerging Markets at 0.02%. In the US, Small Caps outperformed Large Caps by 2.5 x and Value outperformed Growth, both of which were powerful statements on the outlook for the economy. Bond yields decline marginally,...... (click for more)

Continuing enthusiasm for the Artificial Intelligence (AI) trade coupled with a steady stream of solid economic news, helped financial markets to mostly look past the Iran War. Positive comments from President Trump and Treasury Secretary Bessent in the final week of the month regarding progress in the Iran War negotiations, further helped markets look past the War. Overseas, China and Brazil reported positive upgrades in business activity with Japan showing improvement in consumer spending. The S&P 500 ended the month up 5.15% with Foreign Developed at 3.07% and Emerging Markets at 9.69%, the latter reflecting the rally in chip stocks related to the AI trade.  In the US, Large Caps outperformed Small Caps, while Growth outperformed Value, both of which were.... (click for more)