Brent Falls to $91 as Iran-U.S. Ceasefire Lifts Stocks Despite 3.8% Inflation

9 articles · Updated · Courthouse News Service · May 29

Brent crude slid to about $91, its lowest since mid-April, as reports of another Iran-U.S. ceasefire and a tentative Friday truce eased fears of supply disruption.
U.S. stocks rallied with that drop in oil prices: the Dow gained 448 points for the week, while the S&P 500 rose 106 and the Nasdaq added 629.
Inflation data still clouded the outlook. April headline PCE edged up to 3.8%, the monthly index rose 0.4%, and first-quarter GDP growth was revised down to 1.6% from 2.0%.
Consumer and business sentiment weakened as higher energy costs hit confidence earlier in the month: the Conference Board's consumer confidence index fell to 93.1, and its CEO gauge slipped back into negative territory.
The mixed picture left investors balancing ceasefire-driven relief against fading hopes for Federal Reserve rate cuts in 2026 and signs of slower growth.

As oil prices fall but inflation soars, which economic signal should businesses and consumers trust?

With stagflation looming, is the market's 'relief rally' a dangerous illusion for investors?