Finance

Energy benchmarks witnessed a sharp decline, with Brent and U.S. crude oil prices dropping nearly 5% following the announcement of the U.S.-Iran peace accord. The deal is expected to reopen the Strait of Hormuz, leading to the lowest closing prices for oil since the conflict began in early March.

The Federal Reserve has kept the federal funds rate within a target range of 3.50% to 3.75% as it assesses a complex economic environment. While headline inflation reached a three-year high of 4.2% in May due to previous energy shocks, markets anticipate the Fed will hold rates steady at its upcoming June 16-17 meeting.

Artificial intelligence continues to drive significant growth in the technology sector, with chipmakers like Micron and Nvidia seeing substantial price increases. The Philadelphia Semiconductor Index reached a record high as investors focused on long-term fundamentals and the massive capital expenditure projected for AI data center construction through 2026.