Finance

The latest Consumer Price Index report revealed that U.S. inflation held steady at 3.4% in August, matching consensus forecasts while core inflation edged slightly higher than expected. This underlying stickiness has rapidly shifted market expectations, with traders pricing in a nearly 87% probability of an interest rate increase at the central bank's upcoming policy meeting. Consequently, short-term bond yields remained elevated as the market prepares for tighter monetary conditions.

Energy markets experienced intense volatility due to ongoing conflicts in the Middle East, pushing Brent crude futures back above the $100 per barrel threshold. Prices temporarily retreated from a four-month high late in the week following adjusted global demand forecasts and regional shipping talks, yet diesel and crude benchmarks remain up substantially over the month. The supply constraints have intensified structural inflation concerns, weighing heavily on consumer sentiment.

Precious metals experienced notable downside volatility, leaving gold on track for its third consecutive weekly decline. Although safe-haven demand remains supported by global geopolitical tensions, the commodity has been overmatched by a firmer U.S. dollar and soaring Treasury yields. Because gold is a non-yielding asset, the increasing likelihood of a restrictive Federal Reserve policy next week has significantly raised its opportunity cost for investors.