Finance

West Texas Intermediate and Brent crude futures both dropped more than 2% after reports emerged that Washington and Tehran are engaging in negotiations. The potential phased agreement aims to safely reopen the Strait of Hormuz, providing significant relief to energy markets that had been severely pressured by Middle East conflicts.

The aggressive bond market selloff took a temporary breather on Friday afternoon, allowing benchmark yields to ease slightly from their intraday peaks. Despite the modest pullback, the 10-year Treasury yield finished at a 19-year closing high of 5.18% as investors continue to navigate an economy dealing with persistent inflation and elevated borrowing costs.

An updated consumer sentiment survey from the University of Michigan highlighted a notable drop in consumer expectations. The decline reflects growing public pessimism regarding high interest rates, persistent inflation risks, and the Federal Reserve's ongoing interest rate-hiking cycle.