Finance

Energy markets saw volatile trading calm down after President Donald Trump announced a bilateral supply agreement with Vladimir Putin to bring Russian diesel to domestic and international buyers. Despite ongoing tension and strikes on vessels tracking near the Strait of Hormuz, West Texas Intermediate and Brent crude futures dipped slightly following the announcement. However, Brent prices continue to hover well above the $100 per barrel mark due to broader Middle East risks.

The 10-year Treasury yield consolidated around 5.24%, stabilizing just below the 24-year high of nearly 5.37% reached earlier in the week. Yields have faced strong upward pressure driven by robust economic data, recent interest rate adjustments, and safe-haven dynamics. Bond investors are remaining cautious as macroeconomic focus pivots to corporate earnings reports and upcoming central bank actions.

A preliminary report from the University of Michigan revealed that American consumers have raised their one-year inflation forecasts to 4.7%. The data reflects growing anxiety over the cost of living, particularly among lower-income demographics who are less insulated by stock market investments. This uptick in expectations has added further complexity to the Federal Reserve's monetary policy outlook ahead of its next meeting.