Finance

Energy prices and government bond yields cooled on Thursday as investors recalibrated their response to the conflict between the U.S. and Iran. West Texas Intermediate crude futures settled down 2% to approximately $72 per barrel, while the 30-year Treasury yield saw its largest one-day decline in over two weeks, finishing near 5.05%. This easing of price pressure provided a measure of relief for the broader equity market.

Recent meeting minutes highlight a split among Federal Reserve officials regarding the future path of interest rates, with some advocating for a hike and others favoring a hold. While the benchmark rate remains in the 3.5% to 3.75% range, Chair Kevin Warsh has notably shifted away from providing traditional forward guidance. Traders currently see a low probability of a rate increase at the upcoming July meeting, though inflation remains a persistent concern.

Existing home sales in the United States unexpectedly declined by 2.4% in June, falling to an annual rate of 4.09 million units. The slowdown is attributed to a combination of record-high home prices and elevated mortgage rates, which have kept many potential buyers on the sidelines. Despite the cooling in sales, the median existing home price rose to $440,600, reflecting persistent inventory tightess.