Global markets on May 19, 2026, were heavily influenced by persistent geopolitical tensions, particularly concerning the US and Iran, which continued to drive energy prices and inflation fears.
April's Consumer Price Index (CPI) rose 3.8% year-over-year, largely due to elevated oil and gasoline prices, while Core CPI increased by 2.7% year-over-year.
The Federal Reserve held interest rates steady in the 3.50%-3.75% range, with Kevin Warsh confirmed as the new Fed Chair. The US labor market showed resilience, adding 115,000 jobs in April, and the unemployment rate remained at 4.3%. First-quarter GDP grew at a 2% annualized rate, supported by significant AI investment but tempered by softer consumer spending.
An agricultural trade deal between the US and China was also announced, providing some positive sentiment amidst the broader uncertainty.