From the Desk - Economic Commentary
Brandon Casey, Member Strategies - 6/1/2026
U.S. equity markets are lower to begin the week as investors digest the latest developments between the U.S. and Iran. The countries traded strikes over the weekend. Iran state media said that negotiations with the U.S. have stopped, and the country would completely block the Strait of Hormuz. The report also stated Iran wouldn’t resume conversations until Israel withdrew from Lebanon. Domestic stocks finished both the week and month on a strong note, closing at new record highs.
The ISM Manufacturing Index indicated continued expansion in May, with the PMI rising to 54.0, up 1.3 points from April and above expectations, marking the strongest reading since mid 2022 and the fifth straight month the sector expanded. The report showed broad-based improvement across key components, with the New Orders Index increasing to 56.8, up from 54.1 and the Production Index rising to 54.3. The Prices Index remained elevated at 82.1, signaling continued input cost pressures despite a slight decline from April, while the Employment Index improved to 48.6 but remained in contraction territory.
Construction spending increased 0.4% in April, above expectations of 0.3%. Spending was up 0.3% the previous month. The level of spending reached an annualized pace of $2.17 trillion.
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