Finance

The U.S. consumer price index for August held steady at an annual rate of 3.4%, matching market expectations, while the core monthly reading ticked slightly higher to 0.3%. Following the data release, market participants sharply escalated their bets on a looming interest rate hike. Financial markets are now pricing in an estimated 87% probability that the Federal Reserve will raise interest rates at its upcoming policy meeting.

Bitcoin fell below the $77,000 threshold, hitting its lowest trading level in roughly two weeks as higher-for-longer interest rate expectations damped investor sentiment. Digital assets are facing unique headwinds as the U.S. Senate attempts to find consensus on the Clarity Act ahead of upcoming midterm elections. Despite recent short-term volatility and a negative return on the year, some analysts argue structural macro factors like dollar weakness could provide long-term tailwinds.

The average domestic price for a gallon of diesel crossed a historic milestone of $6 amid prolonged structural constraints on refined products. Supply lines have faced significant tightness following the closure of the Strait of Hormuz and ongoing geopolitical tensions involving Ukraine and Russia. Although Brent and West Texas Intermediate crude benchmarks eased slightly at the end of the week, both remained volatile and well above the $100 per barrel mark.