Finance

Energy prices fell sharply as reports emerged that American and Iranian officials are negotiating a phased diplomatic agreement in New York. Speculation regarding a successful deal to unlock traffic through the volatile Strait of Hormuz dragged Brent crude futures below $98 per barrel and knocked West Texas Intermediate down more than 2% to finish near $92 a barrel.

The historic rout in fixed-income securities paused as the 10-year U.S. Treasury yield cooled slightly to settle down at 5.18% after previously flirting with high points not seen since 2007. Investor anxiety eased following data-dependent, non-committal remarks from regional Federal Reserve presidents regarding future rate-hike paths, giving both stocks and bonds a critical buffer.

The latest consumer sentiment data from the University of Michigan revealed that consumer optimism has dropped to its lowest point in four months. Despite revisions indicating the reading was slightly higher than initial forecasts, lingering anxieties regarding persistent inflation and an overheating domestic economy continue to weigh heavily on consumers.