Finance

In the first meeting chaired by Kevin Warsh, the Federal Reserve held interest rates steady at 3.5% to 3.75% but signaled a more aggressive path forward. Projections from FOMC members now suggest a likely rate hike before the end of 2026, a hawkish shift that initially rattled markets on Wednesday before Thursday's rebound. The central bank's updated stance has notably pushed two-year Treasury yields to their highest levels in over a year.

The technology sector outperformed the broader market, driven by significant gains in semiconductor companies. Intel shares jumped 10.6% following news of a partnership with Apple to design chips domestically, while Marvell Technology surged over 7% on renewed AI confidence and a price target upgrade. This momentum reflects continued investor optimism regarding the role of AI infrastructure in driving long-term corporate productivity.

Energy markets responded sharply to the U.S.-Iran agreement, with Brent crude prices falling toward $79 per barrel. This shift has also provided relief at the pump, as the U.S. national average for gasoline dropped below $4 per gallon for the first time since March. Analysts anticipate that while oil prices have dropped immediately, it may take several weeks for supply flows through the Strait of Hormuz to fully normalize.