Finance

Global energy markets experienced a notable relief rally as Brent crude prices slipped back below the $98 per barrel threshold, while West Texas Intermediate neared $92. The drop followed reports suggesting potential developments toward a phased deal in the Middle East that could safeguard maritime traffic in the Strait of Hormuz. The cooling of energy costs alleviated immediate concerns regarding energy-driven inflation spikes.

Fixed-income markets saw the 10-year U.S. Treasury note yield hover near 5.2% and the 30-year note approach 5.5% as persistent inflation risks weigh on bonds. Although lower oil prices allowed yields to give back their sharpest overnight gains late last week, they remain at historic highs. Investors continue to worry that high yields will act as a major headwind for equity valuations.

Wall Street is bracing for a critical array of economic indicators, headlined by the upcoming Personal Consumption Expenditures price index and the September employment report. Strong economic indicators recently boosted the probability of future interest rate hikes by the Federal Reserve, which continues to battle elevated inflation. Analysts warn that robust data points could spark additional hawkishness from central bankers, triggering volatile bond behavior and tech equity drawdowns.