Finance

Major U.S. indexes closed higher for the week, recovering from previous losses as optimism grew regarding a potential peace deal between the U.S. and Iran. This diplomatic progress led to a 3.4% drop in Brent crude prices, alleviating some immediate concerns about energy-driven inflation and supporting a firmer risk-on mood in the markets.

Investors are closely watching the upcoming meeting of the Federal Reserve, which will be the first led by newly appointed Chair Kevin Warsh. While the central bank is expected to hold interest rates steady for now, the transition comes at a delicate time as traders weigh persistent inflation against the risks of higher borrowing costs for the tech sector.

The 10-year Treasury yield settled around 4.52% after a week of volatility triggered by stronger-than-expected jobs growth and producer price index readings. Despite some relief in core inflation measures, the broader data suggests a resilient economy that may prompt the Fed to maintain a hawkish stance through the end of 2026.