Finance

The August consumer price index matched economists' expectations on an annual basis, but core figures stripped of volatile food and energy came in slightly warmer than anticipated. Financial markets adjusted rapidly to the report, with traders pricing in an 87% probability that central bank officials will raise interest rates by 25 basis points at their next meeting.

Ongoing military conflict involving Iran has introduced substantial instability into global energy commodities. Although West Texas Intermediate and Brent crude prices experienced a late-week breather due to shifting pipeline flows, prices remained near multi-month highs, driving retail diesel costs to record levels.

Fixed-income markets experienced sustained pressure as a broad sell-off pushed government debt borrowing costs to multi-year highs. The benchmark 10-year U.S. Treasury note yield closed just under the 5% threshold, exacerbated by disappointment that the Treasury Department's expanded bond buyback program fell short of its maximum target.