Finance

The U.S. Department of Labor reported that the headline inflation rate held steady at 3.4% for August, matching consensus forecasts. However, a slightly higher-than-expected core inflation print sparked widespread expectations of tighter monetary policy. Financial markets are now pricing in an estimated 87% chance that the Federal Reserve will raise interest rates by 25 basis points at its upcoming policy meeting.

Brent crude and West Texas Intermediate futures pulled back by over 2% on Friday, easing some immediate inflationary anxieties for market participants. The decline comes after a volatile week where supply concerns pushed energy prices upward due to intensifying Middle East conflict and pipeline disruptions in Saudi Arabia. Even with the daily retreat, crude contracts recorded an overall weekly gain of approximately 8%.

Digital assets stabilized and staged a modest late-day rally following the release of macro inflation data, with Ethereum leading major tokens higher. The positive price action occurred despite a tough week for institutional products, as spot Bitcoin ETFs recorded multiple consecutive days of net capital outflows totaling nearly $450 million. The broader asset class continues to navigate headwinds stemming from expectations of higher interest rates.