Finance

Reports of advancing negotiations between the United States and Iran regarding the reopening of the Strait of Hormuz provided a substantial reprieve to financial markets. Following the news, Brent crude oil futures dropped below $98 a barrel, allowing elevated 10-year Treasury yields to ease slightly off their multi-year highs.

Even though equities posted weekly gains, long-term inflation concerns remain at the forefront for investors. A recent consumer sentiment survey from the University of Michigan highlighted a drop in economic expectations, driven largely by sustained high yields and the ongoing impact of the Federal Reserve's tightening cycle.

The digital asset market saw significant bullish momentum as Bitcoin surged to the $87,000 threshold, triggering massive short liquidations. The rally occurred as digital assets decoupled from traditional macroeconomic pressures, navigating past the failure of the CLARITY Act in the U.S. Senate as investors focused on alternative regulatory paths.