Finance

The Labor Department reported that consumer prices advanced 3.4% on an annual basis for August, mirroring economists' expectations. However, a slightly hotter core inflation read prompted market participants to sharply raise the probability of a 25 basis point interest rate hike at next week's policy meeting.

Crude oil benchmarks experienced a volatile trading session, with Brent crude dipping to settle around $104 per barrel after approaching nearly $110 earlier. The price correction provided a relief window for equity markets, even as traders tracked supply concerns related to geopolitical tensions in the Middle East and a temporary flow suspension through Saudi Arabia's East-West Pipeline.

Sustained pressures from energy markets and escalating inflation forecasts kept the bond market volatile, pushing the benchmark 10-year U.S. Treasury note yield close to the 5% threshold. Upward movement in borrowing benchmarks was further compounded by a smaller-than-anticipated bond buyback execution from the Treasury Department.