BlackRock Warns of Energy Shock Ahead of US CPI Data

Key Facts

1BlackRock warned that U.S.-Iran tensions could trigger an energy shock impacting upcoming inflation data.

As markets await the May Consumer Price Index (CPI) release, BlackRock warned that geopolitical tensions between the U.S. and Iran could trigger an energy shock, impacting the upcoming inflation figures. The firm noted that rising energy costs pose an early test for the economy ahead of the report, according to media reports.

The warning comes amid relatively strong U.S. labor market data, with the ADP employment change rising to 122,000 in May, beating the 117,000 forecast. The ISM Services PMI also climbed to 54.5, indicating continued economic activity despite price pressures.

At the close of June 8, BlackRock (BLK) shares stood at $994.77, up from an intraday low of $990.76. Investors are now focused on the upcoming CPI data, which could shape the Federal Reserve's monetary policy path in the coming months.