Finance

Energy markets experienced a sharp retreat after the United States administration paused its air strikes against Iranian military targets. Front-month Brent crude futures fell more than 6% to settle below $86 per barrel, while West Texas Intermediate crude slipped over 8% to hover near $82 per barrel. The sudden de-escalation of the five-month conflict alleviated immediate pressure on global energy supplies and helped reduce short-term domestic inflation anxieties.

Chipmaker equities faced notable downward pressure, led by a 5% drop in industry heavyweight Nvidia. The broader semiconductor selloff was exacerbated by the massive Shanghai market debut of Chinese memory-chip rival CXMT, which fueled investor anxiety over global competition and hardware supply gluts. Additionally, investors remain wary regarding capital expenditure discipline and near-term artificial intelligence monetization across the technology ecosystem.

Financial markets are bracing for the central bank's upcoming interest rate announcement, which is considered one of the least predictable decisions in recent years. Interest rate futures show that market participants are pricing in roughly a 33% to 38% probability of a 25-basis-point rate hike this week, with chances rising for a September adjustment. Traders are adjusting to reduced forward guidance from the central bank leadership, creating heightened anticipation ahead of the rate decision and subsequent economic data releases.