Finance

Major U.S. equity futures edged higher early Monday as Wall Street entered a holiday-shortened trading week. This modest recovery follows a significant downturn last Friday that pushed the Dow Jones Industrial Average into correction territory, defined by a 10% drop from recent peaks.

The Federal Reserve opted to maintain the benchmark interest rate between 3.5% and 3.75% during its most recent meeting. However, policymakers have adjusted their 2026 inflation projections upward to 2.7%, citing persistent tariff-related price hikes and the inflationary pressure of rising energy costs.

Digital assets struggled as Bitcoin dipped below the $68,000 mark on Monday, pressured by a massive derivatives expiry and a general shift away from risk-sensitive assets. Analysts note that rising U.S. Treasury yields and geopolitical uncertainty continue to weigh on the cryptocurrency sector, which has seen several consecutive months of decline.

Economists at Goldman Sachs have projected that U.S. unemployment could rise to 4.6% by the third quarter of 2026 due to the impact of surging oil prices. The firm estimates that sustained energy costs could lead to a loss of approximately 10,000 jobs per month through the end of the year as household purchasing power weakens.

Technology stocks led a broad market sell-off last week as investors reassessed valuations in light of 'higher-for-longer' interest rate expectations. Major companies like Microsoft and Nvidia have seen significant pullbacks as the 10-year Treasury yield reached its highest level since mid-2025, diminishing the appeal of high-growth equities.