Finance

Long-dated U.S. government bond yields pulled back slightly after testing multi-decade highs earlier in the week. The benchmark 10-year Treasury yield dipped to around 5.28% as soft employment figures prompted market participants to scale back their expectations for an upcoming Federal Reserve interest rate hike. This marginal cooling of interest rate uncertainty offered a key reprieve for equity markets.

Energy markets saw volatile crude oil benchmarks steadier, with Brent crude tracking near $100 per barrel. Prices cooled slightly after Gulf export volumes reportedly recovered to near pre-conflict capacity, which eased immediate geopolitical anxiety. Market observers noted that stabilizing energy costs have helped reduce broader inflationary concerns for the time being.

The domestic trade balance took a hit as the U.S. trade deficit expanded significantly to reach $105.6 billion for August. This marks its highest level in seventeen months and exceeded consensus estimates from economists. The expansion was primarily driven by a wave of inbound shipments reaching an all-time record, offsetting gains in industrial goods exports.