Finance

Crude oil futures fell below key benchmarks, with Brent crude sliding under $98 a barrel amid reports of diplomatic negotiations between the U.S. and Iran regarding the reopening of the Strait of Hormuz. Despite the recent pullback, elevated energy costs stemming from persistent Middle Eastern conflicts continue to fuel concerns over inflation and a potentially overheating economy. These factors have kept the benchmark 10-year Treasury yield hovering near a 19-year closing high of 5.18%.

The final September reading of the University of Michigan's consumer sentiment index edged up to 48.1, rising above the month's preliminary estimate of 47.8. Despite the modest uptick, overall consumer optimism remains down from August levels due to the prolonged sting of high gasoline prices. The data highlighted rising long-term inflation expectations, which could alter purchasing behaviors and prompt the Federal Reserve to consider additional rate hikes.

Gold futures stabilized near $4,300 per troy ounce at the end of the week, but still posted a weekly loss of over 2%. The metal has faced severe pressure from a stronger U.S. dollar, multi-decade high Treasury yields, and a 69% market probability of an upcoming Federal Reserve interest rate hike in October. Analysts note that while the commodity is experiencing a necessary correction, structural demand and deep sovereign debt risks continue to provide a long-term price floor.