Finance

International and domestic crude prices experienced a sharp drop in early trading, paring a substantial portion of recent war-driven risk premiums. The selloff followed reports that diplomatic negotiations would resume and that progress was being made toward reopening the crucial Strait of Hormuz. Lower energy costs helped support broader equity markets, particularly in heavily exposed international regions.

Even with positive stock market momentum, the 10-year U.S. Treasury yield remains pinned near recent highs, keeping corporate and consumer borrowing costs elevated. The Federal Reserve maintained its benchmark interest rate at 3.50% to 3.75%, though an undercurrent of hawkish dissent has kept investors wary of a potential future rate hike. Market participants are heavily focused on upcoming monthly labor and inflation data to gauge the Fed's next moves.

The Japanese yen strengthened noticeably against the U.S. dollar following a rare, coordinated market intervention by the U.S. Treasury and Japan's Ministry of Finance. Authorities stepped in to purchase the yen after it plummeted to a multi-decade low late last month due to wide interest rate differentials. Analysts noted that such overt joint actions are historically uncommon and aim to curb disorderly currency volatility.