Finance

US equity markets faced downward pressure as global oil prices surged amid escalating geopolitical tensions in the Middle East. Brent crude approached $105 a barrel, reigniting core inflation worries and fears of prolonged high interest rates. While the S&P 500 and Nasdaq posted losses for a second consecutive day, the Dow Jones Industrial Average managed to eke out a minor gain as Treasury yields stabilized late in the session.

Concerns over monetary tightening deepened after the Federal Reserve's latest meeting minutes revealed that most officials still favor another interest rate increase before the end of the year. This hawkish sentiment was reinforced by Federal Reserve Governor Christopher Wallace, who stated that multiple rate hikes could be required to bring inflation down effectively. The prospect of sustained borrowing costs kept pressure on risk assets and broad equity sentiment.

The digital asset market suffered significant losses, leading to over $600 million in long-side liquidations in a single hour. Bitcoin fell below its critical $84,000 support level to trade near $82,600, while Ethereum dropped over 4%. The pullback was heavily exacerbated by external macroeconomic factors, including net outflows of $487 million from US spot Bitcoin ETFs.