The three major US stock indices closed sharply lower on Wednesday following the release of new inflation data. The US Labor Department reported that the Consumer Price Index (CPI) for May rose by 4.2% compared to the same period last year, marking the largest increase since April 2023. On a monthly basis, prices increased by 0.5%, following a 0.6% rise in April. When asked by reporters if he was concerned about the latest inflation figures, President Trump stated, "No, I like it. I love inflation." The data showed the annual CPI rate climbing to 4.2%, a three-year high, with the core CPI annual rate reaching its highest level since last September.

US Markets Overview

At the close, the Dow Jones Industrial Average fell by 953.51 points, or 1.87%, to finish at 49,918.60. The Nasdaq Composite dropped 509.32 points, or 1.98%, to 25,169.50. The S&P 500 index declined by 119.67 points, or 1.62%, settling at 7,266.98. Notable decliners included Super Micro Computer (SMCI.US), which plunged nearly 28%, while Tesla (TSLA.US) and NVIDIA (NVDA.US) both fell over 3%. The Nasdaq Golden Dragon China Index ended the session down 0.28%, with NetEase (NTES.US) gaining close to 4%.

European Markets Snapshot

In Europe, the German DAX 30 index decreased by 217.10 points, or 0.89%, closing at 24,200.97. The UK's FTSE 100 index added 22.61 points, or 0.22%, to 10,249.94. The French CAC 40 index fell 41.60 points, or 0.51%, to 8,161.83. The Euro Stoxx 50 index was down 35.18 points, or 0.58%, at 6,014.56. Spain's IBEX 35 index lost 47.63 points, or 0.26%, ending at 18,139.07, and Italy's FTSE MIB index dropped 252.26 points, or 0.50%, to close at 50,010.50.

Asian Market Performance

In Asia, Japan's Nikkei 225 index fell 1.89%, while South Korea's KOSPI index dropped 4.52%. India's Sensex index closed with a marginal decline.

Currency and Crypto Movements

The US Dollar Index, which measures the greenback against a basket of six major currencies, showed little movement, hovering around 100.02 at the end of the trading session.Bitcoin briefly fell below $61,000, trading at $60,775, while Ethereum touched a low of $1,606.14.

Commodity Prices

International oil prices rose significantly on Wednesday. WTI crude futures gained 4.14% to settle at $91.85 per barrel, while Brent crude futures advanced 3.56% to $94.71 per barrel.

In the precious metals market, spot gold fell below the $4,100 per ounce mark, hitting its lowest level since last November, and closed down 4.45% at $4,070.65. Spot silver edged down 0.04% to $63.381 per ounce.

Key Economic Developments

US tariff revenue and refunds for May were nearly equal. The US Treasury Department stated that the government's net tariff income for the month was approximately zero. Data showed the government collected $22 billion in tariffs, roughly the same as in May 2025, but also paid out $22 billion in tariff refunds. For the current fiscal year, which began on October 1, 2025, net tariff income stands at $189 billion, higher than the $81 billion recorded in the same period a year earlier. On a calendar-adjusted basis, the budget deficit for the first eight months of the fiscal year was $24 billion lower, a reduction of 2% compared to the previous year.

Sources indicated that a strategy meeting was held in the White House Situation Room to discuss potential new strikes against Iran, aimed at pressuring the country to change its negotiating stance. This followed earlier comments suggesting significant action was imminent. Attendees reportedly included senior officials and advisors, with the Defense Secretary participating via video link.

The US Department of Energy announced it is seeking to lend up to 40 million barrels from the Strategic Petroleum Reserve (SPR) to energy companies to help lower fuel prices. This is part of a prior agreement to release 172 million barrels. To date, approximately 133 million barrels have been loaned under this program. The current US SPR inventory stands at 349.2 million barrels, its lowest level since August 2023. Borrowing companies must return the equivalent volume of crude oil plus a premium of up to 24% paid in additional barrels.

Corporate News Highlights

The US Department of Justice is investigating whether major American banks have closed customer accounts for political reasons. Subpoenas have reportedly been issued to several large banks, including JPMorgan Chase (JPM.US) and Bank of America (BAC.US), seeking information on potential "de-banking" practices. This investigation is part of a broader initiative examining whether banks have discriminated against conservative individuals and politically sensitive industries.

A US Senator has written to the Securities and Exchange Commission urging a delay in the initial public offering of SpaceX (SPCX.US), citing potential significant risks to retail investors and their retirement savings. The IPO, which is expected to raise over $74 billion, is slated to begin trading on Friday.