Finance

International energy markets experienced renewed volatility as Brent crude rose toward $105 a barrel and West Texas Intermediate crossed $93 a barrel. The commodity spike was driven by mounting geopolitical frictions regarding Iran and shipping disruptions in the Persian Gulf. This upward move in energy costs has further exacerbated Wall Street's concerns over sticky inflation metrics and subsequent central bank tightening.

Shares of Oracle dropped more than 5% following reports that the technology giant invoked a force majeure declaration. The company used the legal clause to protect itself from potential delays surrounding a data center construction project in New Mexico. The sudden announcement weighed heavily on the broader technology sector during the session.

Robust domestic economic data backfired on investor sentiment as the September S&P Global Composite PMI accelerated to its highest level since mid-2021. Combined with weekly jobless claims hovering near historic lows at 197,000, the data prompted hawkish rhetoric from Federal Reserve officials indicating that interest rates must remain restrictive for longer. The probability of an October rate hike jumped significantly on the back of these developments.