Stock Market Update

[BRIEFING.COM] The major indices remain in a down-and-out position, feeling the weight of losses in the information technology sector (-1.4%) and many cyclical sectors in today's action.

Amazon's (AMZN 239.20, -5.00, -2.05%) expansion in the less-than-truckload space has industry competitors like FedEx Freight (FDXF 175.90, -12.56, -6.67%), Old Dominion (ODFL 233.99, -14.74, -5.93%), and XPO (XPO 216.21, -11.37, -5.00%) on their heels, which has been a drag on the industrials sector (-2.7%). Elsewhere, the consumer discretionary (-1.8%), materials (-1.7%), and communication services (-1.4%) sectors are underperforming.

Inflation concerns are in today's mix, more so for the stock market than the Treasury market. Accompanying today's Consumer Price Index was an added release indicating real average hourly earnings, which are adjusted for inflation, were down 0.8% year-over-year, reflecting a loss of purchasing power due to the higher prices. That shift threatens to slow discretionary spending activity if it persists.

Separately, the Treasury Department reported a $292.6 billion deficit for May (Briefing.com consensus: $202.5 bln), which was $23 billion less than the deficit reported for May 2025. Receipts totaled $335.5 billion, while outlays reached $628.2 billion. The budget deficit over the last 12 months is $1.657 trillion versus $1.680 trillion in April.

The key takeaway from the report, for some, will be the decline in customs duties as tariff refunds exceeded tariff collections, but even more important is the continued increase in the outlay for net interest ($107 billion), which was 47% more in May than the outlay for national defense.