Finance

In his first meeting as Chair, Kevin Warsh led the Federal Open Market Committee to hold interest rates steady at 3.50% to 3.75%. However, updated projections revealed a hawkish turn, with a majority of officials now signaling at least one additional rate hike before the end of 2026 to combat persistent inflation.

Energy prices faced significant downward pressure as the U.S. and Iran signed a memorandum of understanding to extend their ceasefire and reopen the Strait of Hormuz. This geopolitical breakthrough led to a double-digit weekly decline in crude oil prices, easing broader inflationary concerns for global investors.

Despite macroeconomic volatility, S&P 500 companies have demonstrated strong financial resilience with year-over-year earnings growth exceeding 20%. This performance is largely attributed to a massive boom in artificial intelligence capital spending and expanding profit margins across diverse sectors including technology and industrials.