“Don’t be a hero. Don’t have an ego… The second you do, you are dead.” —Paul Tudor Jones.

1. Senate Passes Resolution Directing Trump to End Hostilities With Iran — The resolution passed by the Senate Tuesday afternoon, in a 50-48 vote, directs the president to remove U.S. armed forces from hostilities against Iran unless explicitly authorized by Congress, other than to defend America, an ally or partner from “imminent attack.” The resolution, previously passed by the House, is nonbinding but marks the first time both chambers of Congress have passed the same measure to curb Trump’s power to wage the war against Iran. Republicans had thwarted similar Iran war-powers resolutions in recent months, voting to block them eight times since February. But there have been signs that GOP support is fading for the Trump administration’s conduct of the war in Iran, and growing concerns about tenuous peace negotiations.
2. US New-Home Sales Unexpectedly Fall Amid High Mortgage Rates — Purchases of new single-family homes decreased by 7.3% to an annual rate of 580,000 last month, according to government figures published Wednesday. That trailed all economist estimates in a Bloomberg survey. The median sales price edged higher to $424,900, little changed from a year earlier. Prices have generally softened since 2023 as builders have focused on smaller homes and cut prices to improve affordability. Mortgage rates are hovering near nine-month highs at about 6.6%, and inflation’s resurgence is proving to be another challenge for would-be homebuyers.
3. US Consumer Spending Picks Up as Inflation Hits Three-Year High — The personal consumption expenditures price index rose 4.1% from a year earlier, the most since April 2023, Bureau of Economic Analysis data out Thursday showed. Excluding food and energy, prices were up 3.4% from a year earlier. Inflation-adjusted consumer spending rose 0.3% last month after stalling in April. Higher-than-usual tax refunds have helped bolster consumers in recent months, while a reaccelerating labor market and rising stock prices are also supporting spending. Even so, workers across sectors have seen pay gains fail to keep up with inflation, which has many saving less or turning to credit cards to maintain consumption habits.
4. S&P Keeps US Sovereign Rating At AA+ With Stable Outlook — S&P Global Ratings affirmed the US’s credit rating at AA+, one level below the top rank, citing a resilient economy and high but stable fiscal deficits. S&P expects US net general debt to approach 100% of GDP “given structurally rising nondiscretionary interest and aging-related expenditure.” The analysts also noted that the US’s political parties are far apart and bipartisan cooperation to lower deficits and deal with shrink the budget, “remains elusive.” All three major ratings agencies have the US pegged one level below Triple-A with stable outlooks, but S&P said its assessment of the US is below some of its peers. The dimmer view takes into account political polarization “with comparatively sharper swings in policies, particularly under a unified government,” S&P said. “It also reflects the lesser ability of the US political class to redress deterioration of the sovereign’s fiscal profile.”

The week ahead — Economic data from Econoday.com: