Finance

The U.S. economy expanded at an annualized rate of 2% in the first quarter of 2026, marking a rebound from the previous quarter's government shutdown. Growth was largely driven by robust business investment in artificial intelligence and equipment, even as rising energy prices from the conflict with Iran began to pressure consumer purchasing power.

Crude oil prices experienced significant whipsawing as investors reacted to reports of potential expanded military options in Iran and threats to the Strait of Hormuz. Although Brent crude briefly touched wartime highs near $115 per barrel, prices retraced late in the session, which helped alleviate some immediate pressure on broader equity benchmarks.

The Federal Open Market Committee voted to keep the federal funds rate in a target range of 3.5% to 3.75% during its latest meeting. Policy makers cited a high level of uncertainty stemming from geopolitical tensions and noted that future rate cuts are unlikely as they monitor inflationary pressures from rising energy costs.