Last Week: 0.09%
YTD: 15.46%
1 Year: 24.75%
Dow Jones Industrial Average
Last Week: 0.11%
YTD: 4.79%
1 Year: 15.97%
Last Week: 0.72%
YTD: 19.11%
1 Year: 31.00%
Last Week: 0.31%
YTD: 0.77%
1 Year: 8.92%
YTD: 21.80%
1 Year: 34.77%
YTD: 5.94%
1 Year: 12.40%
Key Inflation Measure
The core personal consumption expenditure price index increased 2.6% from a year ago and 0.1% from the previous month. This new data was in line with analysts’ expectations. May marked the lowest annual rate since March 2021. On another note, personal income rose 0.5% on the month, stronger than the 0.4% expected increase. The Fed uses these two measures to determine the optimal time to start lowering interest rates.
Student Loan Repayments Paused
The Biden administration is pausing student loan payments for about three million borrowers enrolled in its new repayment plan, the SAVE plan, as it faces legal challenges from Republican-backed lawsuits. These borrowers, with monthly payments above $0, will owe nothing on their debt for now. Two federal judges have temporarily halted significant parts of the plan, citing overreach by the administration. The Department of Education has vowed to defend the plan, and affected borrowers will be put into forbearance without accruing interest.
Retail Software Cyber Attack
CDK Global, a major software provider to the auto industry, is still seeing major outages after a cyber attack began last week. Nearly 15,000 car dealerships in North America have been affected since Wednesday. The company has not yet determined who is behind the attack but has launched an investigation into the ransom-style cyber attack. Many car manufacturers and dealers have had to implement a temporary solution to remain operational while the outage is ongoing. Mike Stanton, the president and CEO of the National Automobile Dealers Association, told news stations in a statement, “We continue seeking information from CDK on the nature and scope of the cyber incident, so dealers can respond appropriately.” CDK expects the systems to be restored over the next few days.
