Finance

Gross domestic product expanded at an annualized rate of 2% in the first three months of 2026, according to advance estimates from the Commerce Department. While this figure slightly trailed analyst forecasts of 2.3%, growth was bolstered by significant business investment in artificial intelligence and a recovery in government spending following a prior federal shutdown.

Global oil prices experienced significant swings, with Brent crude hitting a four-year intraday high of $126 before retreating toward $114 per barrel as the June contract expired. The retreat in energy costs provided relief to equity investors who had been weighing the impact of high gasoline prices on consumer purchasing power amid the conflict in Iran.

The Federal Open Market Committee elected to keep the federal funds rate in a target range of 3.5% to 3.75% during its latest policy meeting. Despite the pause, four dissenting votes and a more hawkish tone from officials have led market participants to price in a higher probability of potential future hikes as inflation metrics remain elevated.