Finance

Energy and tech markets found relief after the U.S. administration clarified it does not intend to launch military strikes against Iran prior to the upcoming midterm elections. This announcement helped stabilize oil prices, which had seen West Texas Intermediate futures hover around $91.85 per barrel. Concurrently, clarified financials from OpenAI alleviated market fears regarding an artificial intelligence valuation bubble, prompting a strong tech sector recovery.

Fixed-income markets experienced considerable pressure as long-dated Treasury yields continued to trade near historic highs. The benchmark 10-year Treasury yield finished the week at 5.24%, reflecting investor anticipation of aggressive monetary tightening by the Federal Reserve. This trajectory aligns with weakening consumer sentiment, as the latest University of Michigan survey indicated that Americans have elevated their year-ahead inflation forecasts to 4.7%.

Delta Air Lines kicked off third-quarter corporate reporting by holding steady, as strong premium travel demand was offset by high fuel expenditures. Wall Street is now turning its attention to the official launch of the corporate earnings season next week, with major financial institutions including Citigroup, JPMorgan Chase, and Wells Fargo slated to release their results. Overall, market participants anticipate robust profit growth despite broader macroeconomic headwinds.