Finance

Crude oil futures fell sharply as global markets reacted to reports of ongoing negotiations in New York between U.S. and Iranian officials concerning the Strait of Hormuz. West Texas Intermediate dropped over two percent to settle near $92 per barrel, while Brent crude oil fell under the $100 mark. The drop in energy prices released a great deal of the inflationary pressure that has restricted broader market momentum throughout the month.

The bond market saw a reprieve on Friday as the benchmark 10-year U.S. Treasury yield cooled slightly to 5.18% after climbing to historic multi-decade highs earlier in the week. Yields dipped as Federal Reserve officials John Williams and Anna Paulson provided measured public commentary emphasizing data-dependent monetary policy. Despite the temporary breather, market consensus tracked by the CME FedWatch tool continues to favor another potential interest rate hike in October.

Fresh data released by the University of Michigan revealed that consumer sentiment has fallen to a four-month low. Even though the absolute figures came in marginally higher than earlier projections, they kept the possibility of an overheating economy clear to investors. High consumer costs continue to cloud the long-term outlook for consumer spending and broader retail resilience.