Finance

While major capitalization-weighted indexes show volatile performance due to mega-cap tech vulnerability, a clear underlying rotation trade is boosting the broader market. Equal-weighted versions of benchmark indexes have outperformed, reaching record highs as non-tech sectors like real estate, materials, and corporate earnings offer stability.

The Federal Reserve has commenced its two-day policy meeting, with Chairman Kevin Warsh presiding over high-stakes deliberations. Though standard expectations point to holding rates steady, rising energy costs over recent months have led futures markets to price in a noteworthy minority probability of a restrictive interest rate hike.

Brent crude futures fell below the $90 per barrel threshold following a multi-day decline, pulling back significantly from recent threats toward the $100 mark. The drop in energy costs comes amid a continued pause in military hostilities between the United States and Iran, along with ongoing diplomatic discussions.