Finance

Wall Street futures softened on Monday morning as a risk-off sentiment took hold among investors. The pullback was heavily influenced by stalling diplomatic talks between the United States and Iran, which renewed anxieties regarding global energy security and supply-driven inflation. Market sentiment was also dampened by a temporary halt in OpenAI's model training, weighing slightly on highly concentrated technology valuations.

U.S. sovereign bond yields continued their upward trajectory, with the short end of the curve leading the sell-off as the two-year Treasury yield rose to 4.90%. Market participants are pricing in more hawkish policy paths from the Federal Reserve, as strong recent economic indicators suggest the economy remains highly resilient. Traders are currently assigning an approximate 66% probability to an interest rate hike at the upcoming October monetary policy meeting.

The digital asset market displayed considerable resilience as Bitcoin consolidated its recent gains, trading securely above the $84,000 threshold. The price remained largely unmoved by a security breach at the Bitget exchange, where hackers managed to move roughly $83 million out of the platform. Overall cryptocurrency market capitalization managed to sustain its position near the $2.89 trillion mark.