06/22/2026
WEEKLY MARKET UPDATE
Markets got a dose of good news as the United States and Iran signed an agreement to extend their ceasefire and reopen the Strait of Hormuz, easing concerns about global energy supplies. Meanwhile, the Fed held rates steady in Kevin Warsh's first meeting as Chair, and housing data was mixed. Here are some key takeaways.
Fed Leaves Rates Unchanged
Housing Construction Slows as Builders Remain Cautious
Pending Home Sales Continue to Rise
Fed Leaves Rates Unchanged
In Kevin Warsh's first meeting as Fed Chair, the Federal Reserve unanimously voted to leave its benchmark Federal Funds Rate unchanged at 3.50% to 3.75%.
Housing Construction Slows as Builders Remain Cautious
The pace of new home construction slowed sharply in May.
Pending Home Sales Continue to Rise
Pending home sales, a key measure of signed contracts on existing homes, rose 3.8% from April to May, exceeding expectations and marking the fourth consecutive monthly increase.
Economic Snapshot: Consumer Spending and Jobless Claims
Retail sales increased 0.9% in May, significantly exceeding economists' expectations. Sales also remained stronger than expected after excluding gasoline purchases, suggesting the gain was driven by broader consumer spending rather than simply higher gas prices at the pump.
On the labor side, new unemployment claims remain relatively low at about 226,000. However, that number may not fully capture labor market strain, as some displaced workers are turning to freelance or gig work instead of filing for benefits.
Meanwhile, continuing unemployment claims stayed elevated at 1.81 million, suggesting many job seekers are taking longer to find new employment.
What to Look for This Week
More housing news arrives Wednesday with the release of May's New Home Sales report. On Thursday, markets will focus on several key economic updates, including the Fed's preferred inflation measure, Personal Consumption Expenditures (PCE), the final reading of first quarter GDP, and the latest jobless claims data.
Markets will also be watching whether the United States and Iran's agreement to extend their ceasefire and reopen the Strait of Hormuz helps ease pressure on energy prices, which could support a more favorable inflation outlook in the months ahead.
