Finance

Crude oil prices fell significantly, with Brent futures dropping 3.4% as diplomatic efforts signaled a potential ceasefire extension in the Middle East. The reduction in energy costs provided relief to inflation-weary investors and contributed to a risk-on environment across global markets.

Market participants are preparing for a fractured FOMC meeting next week where interest rates are expected to remain steady at the current 3.5%-3.75% range. Despite some cooling in energy, headline inflation reached a three-year high of 4.2% in May, leading several policymakers to signal that additional rate hikes may be necessary later this year.

Bitcoin and Ethereum saw a rebound toward $63,500 and $1,670 respectively, following a volatile period where Bitcoin briefly dipped below $60,000. Institutional demand remains a key factor as spot Bitcoin ETFs recorded their largest net inflows in nearly a month, totaling over $85 million on the same day as the SpaceX listing.