America In Focus: mortgage rate rises while Wall Street looks to continue its winning ways

The economy, inflation and how those forces could impact the lives of Americans were front and center over the past week. Trips to the grocery store or gas station are more painful than they were last year, and that is impacting the decisions of both households and businesses.

Here’s a snapshot of prominent economic data and news that occurred over the past week and what it potentially means for you.

The average long-term U.S. mortgage rate climbed this week to its highest level in nearly nine months, driving up borrowing costs for homebuyers during what’s traditionally the housing market’s busiest time of the year.

The benchmark 30-year fixed rate mortgage rate rose to 6.51% from 6.36% last week, mortgage buyer Freddie Mac said Thursday. Despite the sharp increase, the average rate remains below 6.86%, where it was a year ago.

Rates have been mostly trending higher since the war with Iran began. The closure of the Strait of Hormuz has roiled energy markets, sending crude oil prices sharply higher — a key driver of inflation.

Expectations of higher oil prices and worries about big and growing debts for the U.S. government and others have pushed up long-term bond yields, causing mortgage rates to head higher.

U.S. retailers have spent months navigating an uncertain economic environment, from President Donald Trump’s tariffs to the impact of soaring gasoline prices due to the Iran war. The average price for a gallon of regular gasoline rose again this week, ending at about $4.55 per gallon on Friday, according to AAA. Gasoline prices are about 45% above where they were at this time last year.

Based on quarterly financial reports from Walmart, Target, Home Depot, Lowe’s and TJX, shoppers are cautious but still spending, helped by more generous tax refunds. Yet there is a widespread belief among economists that once those refunds dry up, shoppers will pull back on spending. Consumer spending is the dominant economic engine for the U.S., and retreat would have broad implications for the U.S.

Walmart issued a forecast for the current quarter on Thursday that was weaker than what Wall Street had been expecting. Target raised its annual revenue outlook on Wednesday, saying it expected momentum to continue the rest of the year. Yet the upgraded sales expectations were still below the pace of the first quarter.

Fewer Americans filed for jobless aid last week as layoffs remain low despite a number of uncertainties that continue to cloud the economy.

U.S. applications for unemployment benefits for the week ending May 16 fell by 3,000 to 209,000, the Labor Department reported Thursday. That’s fewer than the 213,000 new applications analysts surveyed by the data firm FactSet had forecast.

Weekly filings for unemployment benefits are considered a proxy for U.S. layoffs and are close to a real-time indicator of the health of the job market.

Despite historically low layoffs, the labor market appears to be stuck in what economists call a “low-hire, low-fire” state. That’s kept the unemployment rate low at 4.3%, but left many of those out of work struggling to find new employment.

The split between Wall Street and most U.S. households grew even wider Friday, as U.S. stocks rose toward the finish of an eighth straight winning week, their longest such streak since 2023. That’s even though a survey showed on the same day that U.S. consumers are feeling worse about the economy.

Shares of Workday and Zoom Communications rose after both delivered better profit reports for the latest quarter than analysts expected.

They’re the latest companies to top analysts’ expectations for profits for the start of 2026. And the cavalcade of such reports has helped U.S. stocks remain near their records. Stock prices tend to follow the path of corporate profits over the long term.

A hiring sign is displayed at a restaurant in Niles, Ill., Thursday, May 14, 2026. (AP Photo/Nam Y. Huh)

Drones operated by Zipline leave base to make deliveries from a Walmart store in Pea Ridge, Ark., Friday, Sept. 26, 2025. (AP Photo/Charlie Riedel)

Options trader Anthony Spina works on the floor of the New York Stock Exchange, Friday, May 22, 2026. (AP Photo/Richard Drew)

Trader Robert Arciero works on the floor of the New York Stock Exchange, Friday, May 22, 2026. (AP Photo/Richard Drew)

PHNOM PENH, Cambodia (AP) — Two separate traffic accidents in Cambodia on Saturday killed at least 14 garment factory workers and injured 79 others, mostly women.

The garment sector is Cambodia's main export earner, with low labor costs being its competitive advantage. Salaries, including overtime, generally amount to $200-300 a month.

The first incident occurred in the province of Kampong Chhnang, approximately 60 kilometers (37 miles) north of the capital, Phnom Penh, when a heavy cargo truck crashed into an open-top truck transporting workers to their factory. Nine people were killed and 44 injured, according to a statement issued by the Labor Ministry.

The second crash occurred in the southeastern province of Svay Rieng, one of Cambodia’s main garment-factory hubs. A bus carrying workers veered off the road and overturned, killing five and injuring 35 others.

Flatbed trucks are the usual method of transportation available for workers. They often lack seats or benches, forcing passengers to stand, significantly increasing the risk of injury or death.

The Labor Ministry statement said 74 of the 93 crash victims were female, roughly matching the proportion of women in the garment sector workforce. Labor Minister Heng Sour said in a speech for International Women’s Day in March that about 80% of Cambodia’s garment workers are female.

The Labor Ministry stated it was “deeply shocked by two horrific traffic accidents that occurred simultaneously” and appealed for strict compliance with traffic laws to prevent accidents.

A Transport Ministry report notes that 1,467 people were killed in traffic accidents in 2025, making it by far the leading cause of deaths by accident in the Southeast Asian nation.

Cambodia’s garment sector, comprising clothing, footwear, and travel items, employs an estimated 800,000 to 1 million people in approximately 1,900 factories, with production accounting for more than $15.5 billion in exports last year, according to the country's Ministry of Commerce.

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This story has been amended to correct the number of injured to 79. It had earlier reported an injury total of 93, based on inconsistent figures given earlier by officials.

FILE -In this Dec. 3, 2018 photo, garment factory workers ride a truck as they go home after a day's work at outside Phnom Penh, Cambodia. (AP Photo/Heng Sinith, File)