Key facts
- Elon Musk became the world's first trillionaire as SpaceX shares surged 25%.
- US inflation reached a three-year high in May, with consumer prices up 4.2% year-over-year.
- Producer prices saw their fastest pace in over three years, rising 6.5% in May.
- Social Security's retirement trust fund faces a projected shortfall in 2032.
- Existing home sales increased 3.2% in May, reaching their fastest pace this year.
- The average 30-year fixed mortgage rate increased to 6.52%.
Elon Musk has become the world's first trillionaire following a significant surge in the valuation of his rocket company, SpaceX. The company's shares reportedly soared 25% upon opening for trading, giving it a market value of $2.21 trillion and pushing Musk's net worth to an estimated $1.1 trillion.
Meanwhile, US inflation reached a three-year high in May, with consumer prices rising 4.2% year-over-year, largely driven by increased energy costs. This marks the third consecutive monthly increase and presents a challenge for the Federal Reserve and the current administration ahead of midterm elections. Producer prices also saw a substantial increase, jumping 6.5% year-over-year, the fastest pace since November 2022, primarily due to a surge in energy prices following the start of the Iran war.
In other economic news, Social Security's retirement trust fund is now projected to face a funding shortfall in 2032, one year earlier than previously estimated. Medicare's hospital insurance trust fund is expected to be unable to pay full benefits in 2033. Despite these long-term challenges, the programs are not expected to collapse entirely, but rather face a partial funding gap.
On the housing front, sales of previously occupied U.S. homes accelerated in May, rising 3.2% to a seasonally adjusted annual rate of 4.17 million units, surpassing economists' expectations and marking the fastest pace this year. However, borrowing costs remain elevated, with the average 30-year fixed mortgage rate ticking up to 6.52% this week. Applications for jobless aid also saw a modest increase, rising by 4,000 to 229,000 last week, though they remain at historically low levels.