Global Economy Briefing — June 26, 2026

Rio Times Global Economy Briefing

The Big Three

Inflation, as expected. The Fed’s preferred gauge rose to a three-year high of 4.1%, but the monthly pace eased to 0.4%, slightly below forecasts — enough to calm nerves.

A split market. The Dow rose 213 points back above 52,000, but the Nasdaq fell for a fourth day as the technology giants kept sliding.

Brazil’s inflation cools. Mid-month consumer prices slowed to 4.80%, with the monthly pace easing — fresh confirmation that the central bank’s rate cut was well judged.

S&P 500

7,357.49

-0.01%

Essentially flat

Nasdaq

25,358.60

-0.46%

Fourth straight decline

Dow Jones

52,062.34

+0.41%

Back above 52,000

30Y / 10Y Treasury

4.93 / 4.38

-0.02%

Eased as tightening bets trimmed

Core PCE (YoY)

3.4%

+0.10%

Highest since late 2023

US GDP (Q1, revised)

2.1%

+0.5pt

Revised up from 1.6%

Micron

—

+15.7%

Blowout earnings and outlook

Brazil Mid-Month CPI (YoY)

4.80%

-0.04%

Monthly pace eased to 0.41%

United States

Release

Actual

Consensus

Verdict

PCE Price Index (YoY, May)

4.1%

4.1%

3-year high

PCE Price Index (MoM, May)

0.4%

0.5%

Below forecast

Core PCE (YoY, May)

3.4%

3.4%

In line

GDP (QoQ, Q1 revised)

2.1%

1.6%

Stronger

Initial Jobless Claims

215K

225K

Low

Europe & United Kingdom

Release

Actual

Consensus

Verdict

German GfK Consumer Climate (Jul)

-29.2

-27.8

Weaker

French Consumer Confidence (Jun)

84

83

Improved

Spanish GDP (YoY, Q1)

2.7%

2.7%

Solid

UK CBI Retail Survey (Jun)

-54

-41

Weak

Asia-Pacific & Emerging Markets

Release

Actual

Consensus

Verdict

Brazil Mid-Month CPI (YoY, Jun)

4.80%

4.82%

Cooled

Brazil Mid-Month CPI (MoM, Jun)

0.41%

0.44%

Eased

Mexico Rate Decision (Jun)

6.50%

6.50%

Hold

Japan Tokyo Core CPI (YoY, Jun)

1.6%

1.6%

In line

Mexico Unemployment (May)

2.70%

2.60% prev

Low

01 Inflation lands as expected, and the market exhales

The week’s most anticipated number arrived without a shock. The Federal Reserve’s preferred measure of inflation rose to 4.1% over the year to May, its highest in three years, driven once again by energy. But the detail that mattered was the monthly pace, which eased to 0.4%, a touch below what economists expected — a sign the surge is not accelerating.

Investors took comfort. Government bond yields slipped and traders slightly pared back their bets on further Fed tightening, helped by a separate reading showing the economy grew a healthy 2.1% in the first quarter, faster than first thought. The Dow rose 213 points to close back above 52,000.

The calm was not universal, though. The technology-heavy Nasdaq fell for a fourth straight day, its longest losing streak in months, as the market’s biggest names continued their retreat.

Beneath a placid surface, an unusual and revealing split was opening up within the technology world itself.

Live Market IntelligenceGlobal Markets — Live BoardInside: market breadth, the sector heatmap, currencies & rates, the Latin America scoreboard and the full instrument board.

Rio Times · Live Market Intelligence

Global Markets — Live Board

World

Jun 26, 2026 · 03:51

S&P 500 · benchmark

—

—

Market breadth · 7 names

57% advancing

4 ▲ advancing3 declining ▼

Currencies, rates & key inputs

Gold

4,039

+0.21%

Brent crude

74.20

-1.41%

Full instrument board

InstrumentLastChangeYoYPrev.HighLowVolume

GOLD

4,039

+0.21%

+21.17%

4,031

4,052

3,998

28,564

SILVER

57.55

-1.37%

+57.30%

58.35

58.08

55.70

6,236

BRENT

74.20

-1.41%

+9.55%

75.26

75.46

74.04

2,461

WTI

70.52

-1.95%

+8.09%

71.92

71.86

70.34

16,567

COPPER

6.07

+0.02%

+19.87%

6.07

6.14

6.02

7,329

IRON ORE

161.91

—

+71.37%

161.91

161.91

1

BTC

60,238

+0.86%

-43.68%

59,722

60,298

58,397

44,941,488,128

ETH

1,567

+0.14%

-35.15%

1,565

1,569

1,521

17,269,598,208

USD/BRL

5.16

-0.31%

-7.13%

5.18

5.18

5.16

—

Largest moves today

WTI

70.52

-1.95%

BRENT

74.20

-1.41%

SILVER

57.55

-1.37%

BTC

60,238

+0.86%

USD/BRL

5.16

-0.31%

GOLD

4,039

+0.21%

ETH

1,567

+0.14%

COPPER

6.07

+0.02%

The session read

The S&P 500 was little changed on the session, with breadth positive — 4 of 7 names higher. BTC led, while WTI lagged.

02 Brazil’s inflation cools again, confirming the call

For Brazil, the day brought another piece of quiet good news. Mid-month consumer prices rose 4.80% over the year, easing from the previous reading, and the monthly pace slowed to 0.41%. After a stretch in which the annual figure had been creeping higher, this is the clearest sign yet that inflation is genuinely turning lower.

The timing matters. Brazil’s central bank cut interest rates last week and then published its reasoning, betting that falling fuel costs and a cooling economy would bring inflation down.

This reading is early vindication of that bet. With global oil near its lowest in months, the most important downward force on Brazilian prices is firmly in place.

The broader region echoed the theme. Mexico held its interest rate steady with inflation under control and unemployment remarkably low, and the easing in US inflation pressure lowered American bond yields, relieving some of the strain on emerging-market currencies.

For Brazil, the combination — cooling inflation at home, cheap oil abroad, and softer US yields — is about as favourable as the central bank could have hoped for as it weighs how quickly to cut again.

03 The paradox — the chip boom now bites the hand that feeds it

The day produced one of the most telling contrasts of the year. Micron, a maker of memory chips, reported blockbuster earnings and surged nearly 16%, as demand for the chips that power artificial intelligence proved stronger than ever. Yet on the very same day, Apple fell 6% and Microsoft 3% — because they announced price increases on iPhones, laptops and game consoles, blaming the soaring cost of exactly those memory chips.

Here, in a single day, was the AI boom’s hidden tension laid bare. The same surge in chip demand that enriches the suppliers is now raising costs for the device makers who buy them, and those costs are starting to reach consumers.

It is a reminder that the AI story is not a simple, rising tide that lifts all boats; it creates winners and losers even within technology, and the price increases hint at a new source of inflation that has nothing to do with oil. For central banks hoping cheaper energy will solve their inflation problem, that is a complication worth watching.

04 What to watch today and this week

Friday: The University of Michigan’s final consumer sentiment reading, for confirmation of the recent rebound in confidence.

Monday: Alphabet formally joins the Dow, replacing Verizon and deepening the index’s exposure to big technology.

This week: Whether the technology giants stabilise or extend their losing streak, after the Nasdaq’s fourth straight decline.

This week: The path of oil, near its lowest in months, and how far it continues to ease inflation worldwide.

Ahead: Signs of whether higher memory-chip prices feed more broadly into the cost of consumer electronics, a potential new inflation pressure.

Frequently Asked Questions

What is the PCE index and why does it matter?

The personal consumption expenditures (PCE) price index is the Federal Reserve’s preferred measure of inflation, because it captures how consumers actually adjust their spending as prices change. It rose to 4.1% over the year in May, the highest since April 2023, but the monthly increase of 0.4% came in slightly below expectations.

That nuance reassured investors that inflation, while high, is not accelerating — which is why bond yields eased and the market reacted relatively calmly.

Why did the Dow rise while the Nasdaq fell again?

The two indexes are weighted very differently. The Dow leans on large industrial, financial and healthcare companies, which gained ground, lifting it back above 52,000.

The Nasdaq is dominated by big technology firms, which fell for a fourth straight day as investors continued to reduce exposure to the sector. The result was a now-familiar split: a rising Dow and a falling Nasdaq, reflecting a rotation of money away from technology and into steadier parts of the market.

Why are Apple and Microsoft raising prices?

Both companies cited the rising cost of memory chips, demand for which has soared because of artificial intelligence. As AI data centres consume vast quantities of these chips, their prices have climbed, raising the cost of building consumer devices like iPhones, laptops and game consoles.

Apple and Microsoft are passing some of that on to customers. It is an unusual situation where the boom in one part of technology is directly raising prices in another — and potentially adding to consumer inflation.

What does Brazil’s cooler inflation reading mean?

Mid-month consumer prices rose 4.80% over the year, down slightly from before, with the monthly pace easing to 0.41%. This supports the central bank’s recent decision to begin cutting interest rates, suggesting inflation is genuinely turning lower rather than continuing to climb.

Combined with oil near multi-month lows — which lowers fuel costs — it gives policymakers more confidence to continue easing. It is an encouraging sign for the Brazilian economy and for the real.

Does the higher inflation reading change the Fed’s plans?

Not dramatically, because the figure matched expectations. The annual rate of 4.1% is high, but the softer monthly pace and the energy-driven nature of the increase suggest the pressure may ease as oil prices fall.

Markets slightly reduced their expectations of further Fed tightening after the data. The central bank, under new Chair Kevin Warsh, has signalled a focus on controlling inflation, so it will watch coming readings closely — but this one did not force its hand in either direction.

Reported for The Rio Times — Global Economy Briefing. Filed June 26, 2026 — 08:00 BRT. Sources: CNBC, TheStreet, Trading Economics, T. Rowe Price, The Rio Times. Previously: June 25 · June 24.