Finance

The Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, climbed above 4% in May, reviving fears of potential interest rate hikes. This unexpected inflationary pressure has led to an increasingly hawkish tone from Fed officials and has contributed to market volatility as investors reassess monetary policy trajectories.

Crude oil benchmarks fell significantly, with West Texas Intermediate dropping toward $69 per barrel as immediate supply disruption fears eased following a fragile U.S.-Iran truce. The decline comes even after recent reports of an Iranian attack on a cargo ship in the Strait of Hormuz, suggesting that traders are currently prioritizing a return to pre-war supply levels over geopolitical risk premiums.

Cryptocurrency markets remained under significant stress, with Bitcoin falling below the $60,000 threshold and Ethereum dropping near $1,550. The sector's decline reflects a broader rotation away from high-growth assets and has been exacerbated by six consecutive weeks of net outflows from U.S. spot Bitcoin ETFs.