U.S. Services Sector Activity Unexpectedly Sank in May
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Activity among U.S. services firms sank in May. The Institute for Supply Management said today that its Purchasing Managers Index for service providers fell to 49.9 in May from 51.6 in April. The reading below 50 points to a first contraction in activity since June 2024.

Earlier, the latest hiring numbers from the ADP National Employment Report showed that just 37,000 jobs were created last month, down from 62,000 in April. It's the slowest pace of private sector hiring in more than two years. After the release of the numbers, President Trump posted on Truth Social, calling again for Fed Chair Jerome Powell to cut interest rates.

A large cargo ship transporting thousands of vehicles is adrift in the Pacific Ocean after several electric vehicles it was carrying caught fire. All 22 crew members were evacuated safely. The lithium batteries used in many electric vehicles are highly flammable and there have been cases of spontaneous combustion, but no ship fires so far have been directly blamed on EVs. The Bank of Canada left its main interest rate at 2.75%, saying the economy has softened but not deteriorated and inflation has picked up steam.

And Iran's Supreme Leader Ayatollah Ali Khamenei effectively rejected a U.S. proposal that allows temporary uranium enrichment in Iran before ending it completely. The White House is now forced to reconsider its approach as tensions mount over Iran's nuclear program. We'll have more coverage of the day's news on WSJ's What's News podcast. You can add it to your playlist on your smart speaker or listen and subscribe wherever you get your podcasts.