Finance

Energy markets experienced a sharp reversal with both WTI and Brent crude futures falling below $100 per barrel. The decline was triggered by expectations of a reopened Strait of Hormuz, which alleviated supply concerns that had previously buoyed the energy sector.

The yield on the 10-year U.S. Treasury note dropped to approximately 4.35% as the potential for lower energy costs reduced immediate inflation fears. Despite this pullback, yields remain relatively high as the federal government prepares to borrow more than $2 trillion to manage the current fiscal deficit.

The central bank held the federal funds rate target between 3.50% and 3.75% during its latest policy meeting to navigate persistent inflationary pressures. While the economy grew at a 2% annual rate in the first quarter, officials remain cautious about future rate cuts given the uncertainty surrounding global trade and labor markets.