Finance

Recent economic data shows the Core PCE price index rose to an annual rate of 3.2%, a multi-year high that complicates the outlook for monetary easing. Market participants are increasingly adjusting expectations, as high energy costs and resilient consumer demand suggest interest rates may remain elevated for longer than previously anticipated.

Alphabet shares surged 10% after reporting massive profit growth fueled by AI, while Meta and Microsoft saw their stock prices pressured by rising capital expenditure forecasts. Investors are closely monitoring the balance between immediate revenue gains and the heavy long-term infrastructure costs required to support generative artificial intelligence.

Crude oil prices have held steady above $110 per barrel due to an ongoing blockade in the Strait of Hormuz and heightened tensions between the U.S. and Iran. While gold traditionally serves as a safe haven, it faced a weekly loss as soaring energy costs reinforced the likelihood of a higher-for-longer interest rate environment.