Finance

Oil futures fell significantly following reports that American and Iranian negotiators are engaged in discussions regarding the reopening of the crucial Strait of Hormuz. West Texas Intermediate futures dropped roughly 2.3% to settle at $92.41 per barrel, and Brent crude pulled back below the $100 threshold. The cooldown in energy markets provided a necessary relief valve for broader financial markets, as high oil costs have been a major driver of sticky inflation metrics.

The bond market saw intense volatility after consumer sentiment data initially sent the 10-year Treasury yield up to 5.22%, testing its highest mark since 2007. Yields subsequently pulled back late Friday afternoon, with the 10-year note ending near 5.17%, as a corresponding drop in oil prices soothened investor anxieties. Despite the late-day stabilization, long-term borrowing costs finished the week substantially higher, reflecting expectations of prolonged monetary tightening.

Tech-driven optimism remained a primary catalyst for market outperformance, spearheaded by notable industry partnerships and project updates. Akamai Technologies saw its stock climb over 3% following the announcement of an $11.6 billion, multiyear cloud agreement with artificial intelligence firm Anthropic. Additionally, Meta Platforms posted robust weekly gains of nearly 13% as investors responded favorably to enthusiasm surrounding its Muse AI agent.