Finance

Recent May inflation data showing headline consumer prices rising 4.2% annually has led many economists to forecast that the Federal Reserve will maintain current interest rates for the remainder of 2026. Market participants have largely priced out potential rate cuts this year, with some analysts even signaling the possibility of a rate hike if geopolitical conflicts continue to drive energy costs higher.

Crude oil prices surged on Wednesday as military strikes in the Middle East threatened critical supply routes, specifically the Strait of Hormuz. WTI crude approached $90 per barrel as the market braced for potential long-term disruptions, prompting a temporary rally in domestic energy sector stocks while other asset classes faced liquidation.

Digital assets saw broad weakness, with Bitcoin falling toward the $61,000 level and Ethereum dropping more than 3%. The market is contending with significant outflows from exchange-traded funds and a shift in investor focus toward artificial intelligence, leaving major cryptocurrencies struggling to maintain early-year support levels.