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Hello and welcome to your afternoon news update from The Associated Press. Today, a key inflation gauge worsens as Americans' income and spending power erodes; U.S. and Iranian negotiators reach a tentative deal to extend the ceasefire and launch nuclear talks; and gamification and memes lure young people to sports-wagering apps and prediction markets.

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UP FIRST

People shop at a grocery store in Schaumburg, Ill., on May 14. (AP Photo/Nam Y. Huh)

Key inflation gauge worsens as Americans' income and spending power erodes

A key inflation gauge accelerated in April to the highest level in three years, squeezing Americans’ finances and creating political challenges for President Donald Trump and congressional Republicans with midterm elections just five months away. The report also showed, in addition to gasoline, prices for groceries, clothing and electricity are also on the rise, indicating that inflation may be growing more entrenched. Read more.

TOP STORIES

US and Iranian negotiators reach tentative deal to extend ceasefire and launch nuclear talks

U.S. and Iranian negotiators reached a tentative agreement Thursday to extend the ceasefire in the 3-month-old war by 60 days and launch talks on Iran’s nuclear program, according to a U.S. official familiar with the matter. Iran did not immediately confirm any deal, and the official noted that President Donald Trump has yet to sign off on it. The tentative agreement comes at a moment when the fragile ceasefire between the U.S. and Iran appeared to be wavering. Read more.

Gamification and memes lure young people to sports wagering apps, prediction markets

Some sports wagering platforms, as well as popular prediction markets Kalshi and Polymarket, are touting their availability to users starting at age 18 despite most U.S. states restricting gambling to 21 and older. The companies often use memes to advertise their platforms, then keep users hooked with what they market as low-stakes, casual opportunities to make an easy buck. That creates an environment that some say feels more like a game and less like a risky financial transaction. Read more.