Finance

Crude oil prices climbed back above $100 per barrel as the Strait of Hormuz remained closed, intensifying global inflation fears. While higher energy costs provided a boost to the energy sector, they added significant pressure to the broader market and treasury yields as investors weighed the impact on future monetary policy.

The Federal Open Market Committee began its two-day meeting with a universal expectation that interest rates will remain in the current 3.50% to 3.75% range. Market participants are primarily focused on upcoming commentary from Chair Jerome Powell for signals on whether persistent inflation and rising oil prices will delay any potential rate cuts until 2027.

Robinhood shares fell following a first-quarter report that highlighted a 47% year-over-year decline in crypto trading revenue, despite a boost from its prediction markets. Conversely, Starbucks shares saw gains in after-hours trading after the company exceeded fiscal second-quarter sales estimates and raised its full-year guidance.