Finance

Energy prices and Treasury yields stabilized as investors monitored ongoing technical talks between the U.S. and Iran despite recent military escalations. While Brent crude remained near $76 a barrel, the 10-year Treasury yield hovered around 4.54%, reflecting a cautious easing of immediate inflation fears linked to potential supply disruptions in the Middle East.

At the first meeting led by new Chair Kevin Warsh, the Federal Open Market Committee kept interest rates steady between 3.5% and 3.75%. However, policymakers revised their 2026 inflation and rate projections upward, signaling that at least one more rate hike remains likely this year to combat stubborn price pressures.

The retail sector faced headwinds as Costco shares dropped over 4% following reports of decelerating sales growth in June. This trend coincided with data showing a surprising decline in existing home sales and softer consumer borrowing figures, highlighting a growing disconnect between high-flying stock valuations and the reality of the American consumer economy.