Finance

Minutes from the April FOMC meeting reveal that a majority of central bank officials are prepared to raise interest rates if inflation continues to exceed the 2% target. Despite holding rates steady at 3.5%–3.75%, the 8-4 vote was the most divided since 1992, reflecting growing concern over accelerated CPI and PPI data.

While computer hardware and semiconductor firms have seen average returns exceed 90% this year due to AI infrastructure demand, the software industry has faced a significant downturn. Over 75% of software application and infrastructure companies in the US Tech Index are down for the year, with some major firms seeing drops of nearly 50%.

Crude oil futures recently retreated below the $100 mark as optimism grew regarding a potential permanent deal to end conflict in the Middle East and reopen the Strait of Hormuz. Despite recent surges that saw Brent oil hit $113 per barrel, inventories have increased to 452 million barrels, providing a buffer against supply shocks.