Finance

Financial markets are adjusting to a shift in monetary policy expectations following the first meeting under new Fed Chair Kevin Warsh. While interest rates were held steady at 3.5% to 3.75%, updated economic projections and a more aggressive stance on inflation have led many traders to price in at least one rate hike before the end of 2026.

Shares of SpaceX plummeted more than 16% following the announcement of the company's first investment-grade bond sale. Despite holding over $100 billion in cash, the move raised unexpected concerns regarding future financing needs and valuation sustainability after its recent post-IPO rally.

Commodity prices retreated as progress in diplomatic talks between the U.S. and Iran reduced the geopolitical risk premium on energy. Brent crude fell toward $77 per barrel while spot gold dropped below $4,100 per ounce, further pressured by a strengthening U.S. dollar and rising interest rate expectations.