Gov. Gavin Newsom on Wednesday outlined a series of price hikes across multiple goods and services under the President Donald Trump administration since May 2025. The data, rounded off from figures released by the Bureau of Labor Statistics, points to inflation affecting energy, food, and transportation sectors among others.

Price Hikes Across Sectors

In a post on X, Newsom’s official Press Office detailed the specific increases observed over the last year. Gas prices saw the most significant surge, rising by 41%. Airline fares followed closely with a 27% increase. Energy costs, which include electricity and fuel, surged by 24%, while tobacco costs rose by 8%.

Consumer Goods and Services

The impact on daily essentials was also evident. Costs for fruits and vegetables increased by 6%, while car repair expenses saw a similar rise of 6%. Clothing prices went up by 5%.

Political Reactions and Regional Responses

The price increases have drawn reactions from various political figures. Former Congresswoman Marjorie Taylor Greene questioned claims regarding oil movement during the Iran war, highlighting the disconnect between such actions and the high gas costs ordinary Americans face.

In response to the fuel price situation, Gov. Jay Robert ‘JB’ Pritzker announced that Illinois would freeze an automatic hike in the state gas tax until January 2027. Pritzker described the move as providing relief to Americans dealing with high fuel costs.

Geopolitical Tensions

The economic data comes amid escalating tensions in the Middle East. President Trump warned of further strikes on Iran if a deal is not reached, while Iran’s military command announced the closure of the Strait of Hormuz to oil tankers and commercial vessels. Investor Robert Kiyosaki commented that Iran’s move to accept Chinese Yuan for oil payments could negatively impact the U.S. dollar.

US stocks closed lower on Wednesday as the Consumer Price Index rose 4.2% year-over-year in May, reaching its highest level since April 2023, while renewed U.S.-Iran tensions pushed oil prices higher and rattled global markets. Major indexes declined, with the Dow Jones Industrial Average falling 1.87% to 49,918.78, the S&P 500 shedding 1.62% to 7,266.99, and the Nasdaq Composite dropping 1.98% to 25,169.50. The market decline was driven by concerns that the Federal Reserve may keep interest rates elevated for longer than anticipated, alongside a rotation out of high-flying technology shares.

The CNN Money Fear and Greed index showed a further decline in overall market sentiment, remaining in the "Fear" zone at 27.6 versus a prior reading of 32.5. The Dow Jones index fell more than 900 points during the session following renewed U.S.-Iran strikes in the Strait of Hormuz after President Donald Trump threatened additional strikes against Iran. On the economic data front, the annual inflation rate accelerated to 4.2% in May compared to 3.8% in the previous month, in line with market estimates.

Most sectors on the S&P 500 closed on a negative note, with industrials, materials, and information technology stocks recording the biggest losses. However, consumer staples and energy stocks bucked the overall market trend, closing the session higher. The Bureau of Labor Statistics reported that core inflation also accelerated from the prior month. Energy prices were a major contributor to the increase, with oil prices surging during the session as investors monitored developments in the Middle East. Treasury yields moved higher following the inflation data release, reinforcing expectations of a prolonged period of higher rates.

Oracle Corporation (NYSE: ORCL) fell 2.21% to close at $201.26 during regular trading but dropped an additional 10.12% in after-hours trading to $180.89. The company reported fourth-quarter fiscal 2026 results that topped expectations, with revenue rising 21% year-over-year to $19.18 billion and adjusted earnings increasing 24% to $2.11 per share. Growth was driven by strong demand for AI-related cloud services, with cloud revenue climbing 47% to $9.9 billion and cloud infrastructure revenue surging 93% to $5.8 billion. Oracle reported remaining performance obligations of $638 billion, up 363% year-over-year, and forecast first-quarter revenue growth of 27%-29%. The company reaffirmed its fiscal 2027 revenue target of $90 billion and expects to raise about $40 billion in fiscal 2027 through debt and equity financing.

POP Culture Group Co. Ltd. (NASDAQ: CPOP) saw a remarkable surge of 322.22%, closing at $1.52, and rose another 50.66% in after-hours trading to $2.29. The company reported strong growth for the six months ended Dec. 31, 2025, with net revenue rising 65% year-over-year to $68.9 million. Operating income more than doubled to $6.58 million from $2.72 million a year earlier. Honeywell International Inc. (NASDAQ: HON) dropped 4.55% to $205.88, and Caterpillar Inc. (NYSE: CAT) fell 6.40% to $856.16, both pressured by rising oil prices and inflation risks following geopolitical tensions. Navan Inc. (NASDAQ: NAVN) rose 0.92% to close at $20.87 and surged 19% in after-hours trading to $24.88 after reporting first-quarter fiscal 2027 results that exceeded expectations, with revenue rising 40% year-over-year to $220.2 million.

On the earnings front, Core & Main Inc. (NYSE: CNM) reported upbeat earnings for the first quarter on Wednesday. Cracker Barrel Old Country Store Inc. (NASDAQ: CBRL) shares jumped more than 22% on Wednesday after the company reported better-than-expected third-quarter financial results and raised its FY26 sales guidance above estimates. Investors are awaiting earnings results from Driven Brands Holdings Inc. (NASDAQ: DRVN), Adobe Inc. (NASDAQ: ADBE), and Lennar Corp. (NYSE: LEN) today.