Finance

Equity markets found a vital cushion following reports that U.S. and Iranian negotiators are exploring a phased agreement to reopen the crucial Strait of Hormuz. The geopolitical breakthrough offered hope for an easing of Middle East tensions and offset intense selling pressure brought on by macro indicators. The positive diplomatic sentiment allowed major averages to bounce back significantly from their session lows.

Digital assets pulled back sharply, reversing an 8-month high achieved earlier in the week due to brewing macroeconomic headwinds. Bitcoin dropped back toward the $83,000 range, while Ethereum slid over 2.5% as market participants priced in higher probabilities of upcoming Federal Reserve rate hikes. The downturn underscores shifting short-term risk appetite, even as institutional investors look ahead to a potential liquidity refresh in the final quarter of the year.

International benchmarks for crude oil maintained their upward momentum, with Brent crude rising near $105 a barrel and West Texas Intermediate tracking around $94 a barrel. The ongoing rebound in energy costs continues to inject inflation anxieties into broader financial markets, complicating the outlook for global central banks. Consequently, energy was one of the few outperforming equity sectors as high fuel prices pressured broader consumer and industrial segments.