In May, the Federal Reserve's inflation measure hit its lowest since March 2021, reaching a 2.6% annual rate inline with expectations. This suggests interest rate cuts are likely, with September being considered for the first, followed by potentially four more. The first presidential debate boosted Donald Trump's odds at around 60% as Joe Biden's performance was disappointing. Both candidates' policies are seen as inflationary and failing to tackle U.S. economic issues. FedEx and Carnival led the S&P 500's best performances, while Walgreens and Nike plummeted. There are warnings of a potential market downturn due to dependency on a few tech stocks. American banks passed stress tests, but households' pandemic savings are depleted, resulting in rising debts. Analysts predict Tesla may launch lower-cost models soon.