Global stock and bond markets navigated another week of uncertainty hanging over peace talks with Iran. A new volley of military strikes in the Middle East ignited a sharp rally in oil prices on Monday and left borrowing costs elevated amid lingering inflation fears. Although talks were said to continue, the strikes dented hopes for a swift conclusion to negotiations that reportedly could free up the Strait of Hormuz.

Meanwhile, investors are getting a fresh look at the health of the U.S. labor market. Private-sector employment grew by 122,000 jobs in May after gaining 105,000 the month before, payroll processer ADP said on Wednesday. The Labor Department revealed on Tuesday that job openings in the U.S. rose to their highest mark since May 2024, jumping to 7.6 million at the end of April from 6.9 million a month earlier. The agency’s jobs report for May, due to be published on Friday, is expected to show that jobs growth slowed to 80,000 from 115,000 in April, based on estimates collected by Dow Jones. The consumer price index (CPI) report for May will be released next Wednesday, one week before the Federal Reserve holds its first policy meeting under Chair Kevin Warsh.

In a new Weekly View from the Desk, PGIM explores key questions for the second half of the year, including the outcome of U.S.-Iran talks, the forces underpinning U.S. economic growth, and potential rate moves by major central banks.