S&P 500 Clings Near 7,600 as June 10 PCE Looms Amid Sticky Trumpflation

The S&P 500 remains near record highs after closing above 7,600 on June 2, supported by robust earnings and AI gains. Sticky inflation has persisted, with April headline PCE at 3.8% and core at 3.3%—the highest since late 2023—while consumer sentiment hit a record low of 44.8. Energy shocks from the Strait of Hormuz and tariffs have driven trailing 12-month inflation toward a projected 4.18% for May, pushing the 30-year Treasury yield to 5.18% and eliminating rate-cut expectations. Markets now focus on the June 10 inflation release that could force the Fed’s hand under Chair Warsh.