Finance

In the first meeting led by Chairman Kevin Warsh, the Federal Reserve maintained interest rates but surprised markets by signaling potential hikes later in 2026 to combat persistent inflation. The central bank also indicated a move away from providing detailed forward guidance, choosing instead to let markets react more directly to incoming economic data. This shift in tone prompted a sharp rise in short-term Treasury yields as traders priced in a tighter monetary environment.

Technological leadership in the US market remained concentrated in the semiconductor industry, which saw massive rallies this week. Notable gains from companies like Intel, which surged over 10% in a single session, and Micron Technology helped the Nasdaq Composite outperform other major indices. This surge was primarily fueled by sustained demand for hardware capable of supporting large-scale artificial intelligence data centers.

Oil prices experienced a notable decline this week following a preliminary agreement between the US and Iran to reopen the Strait of Hormuz, easing global supply concerns. Brent crude fell to roughly $79 per barrel as reports of restored maritime traffic and increased production forecasts from the Middle East filtered through the market. Analysts noted that lower energy costs could eventually moderate inflation and reduce the pressure on the Federal Reserve to implement aggressive rate hikes.