Finance

Investor enthusiasm for the artificial intelligence trade wavered following reports that OpenAI might postpone its initial public offering until 2027. This potential delay raised concerns regarding the sustainability of current AI infrastructure spending, contributing to a broader retreat in chipmaker valuations.

In his first meeting as Chairman, Kevin Warsh and the FOMC held interest rates steady at 3.50%-3.75% while signaling that further hikes remain possible in 2026. Policymakers sharply raised their inflation forecasts to 3.6% for the year, citing persistent energy price shocks and a resilient labor market.

U.S. Treasury yields trended lower on Friday as a nearly 10% weekly drop in crude oil prices helped alleviate immediate inflation fears. The 10-year yield fell to approximately 4.38% as markets adjusted to signs of cooling energy costs despite a generally more aggressive stance from the Federal Reserve.