Finance

Crude oil prices fell by roughly 4% as high-level diplomatic talks in Switzerland suggested progress toward normalizing flows through the Strait of Hormuz. Brent crude dropped to approximately $77 per barrel, reversing earlier spikes caused by regional tensions. Traders have begun reducing supply risk premiums that previously drove prices higher, focusing now on the speed at which Middle East production can fully recover.

In his debut as Federal Reserve Chair, Kevin Warsh has steered the central bank toward a more hawkish and less transparent policy framework. Major financial institutions including Bank of America and Deutsche Bank now anticipate multiple interest rate hikes starting in September 2026. This shift aims to prioritize price stability and has already led to a flattening of the Treasury yield curve.

Effective today, the Nasdaq-100 and S&P 500 implemented significant membership changes, heavily favoring companies involved in artificial intelligence and semiconductor manufacturing. New additions like CoreWeave and Marvell reflect the ongoing market rotation toward firms supplying AI computing power. The Nasdaq-100's new membership process specifically targets the rapid evolution of the technology sector.