Finance

A significant drop in oil prices provided much-needed relief to Wall Street as international benchmark Brent crude slipped below $98 a barrel and West Texas Intermediate dropped over 2%. The plunge followed emerging reports that American and Iranian diplomats are negotiating a phased deal to reopen the strategically vital Strait of Hormuz. This geopolitical progress allowed high-flying Treasury yields to ease, relieving selling pressure across global markets.

The information technology sector spearheaded the S&P 500's performance, advancing over 3% to close out the week. This rally was fueled by widespread enthusiasm surrounding Meta Platforms' new artificial intelligence agent, Muse, which sent its stock climbing nearly 13% over the week. Additionally, Akamai Technologies boosted software market sentiment after announcing a multi-year deal with AI firm Anthropic.

Despite slightly elevated consumer sentiment figures highlighting ongoing domestic inflation risks, measured statements from regional Federal Reserve presidents provided temporary relief by confirming monetary policy is not on autopilot. However, following the central bank's recent decision to raise interest rates for the first time in three years, market trackers show investors are still pricing in a high probability of an additional rate increase in October. This lingering tightening cycle continues to cap broader financial valuations.