Finance

Energy markets experienced a notable downturn, with international benchmark Brent crude falling below $98 a barrel and West Texas Intermediate crude dropping more than 2% to trade near $92. The price relief followed reports indicating potential diplomatic progress regarding shipping lanes in the Strait of Hormuz. The cooling of energy costs offered crucial breathing room to a market recently weighed down by fears of prolonged energy-driven inflation.

The aggressive selloff in the fixed-income market paused slightly as Treasury yields pulled back from extreme levels late in the week. Prior to the retreat, the 10-year Treasury yield had breached 5.2%, touching its highest mark since 2007, while the 30-year yield reached peaks not seen since 2004. Although yields edged lower alongside falling commodity prices, long-term borrowing costs remain a central challenge for equity valuations.

Market participants closely monitored high-stakes diplomatic talks in the U.S. featuring Chinese President Xi Jinping. While the discussions concluded with limited immediate progress on broader trade and artificial intelligence issues, Treasury Secretary Scott Bessent confirmed that both nations agreed to extend their current trade truce by two months. Investors are looking ahead to additional details slated for release at the start of the upcoming week.