Finance

The latest Consumer Price Index report from the Labor Department showed headline inflation holding steady at 3.4% for August, matching consensus forecasts. However, a slightly stronger-than-expected core inflation metric fueled market conviction that the Federal Reserve will raise interest rates at its upcoming policy meeting. Implied probabilities for a 25-basis-point rate hike next week surged to roughly 87% following the release.

Brent and West Texas Intermediate crude oil futures experienced a minor retreat on Friday but remained highly volatile near multi-month highs. Prices surged earlier in the week due to geopolitical instability, including disruptions to a key Saudi Arabian pipeline and ongoing conflict involving Iran. The slight easing of energy costs toward the end of the week provided necessary relief to equity markets worried about broader inflationary pressures.

Bitcoin fell below the $77,000 threshold, hitting its lowest valuation in approximately two weeks as the broader digital asset market faces intense macroeconomic headwinds. Higher sovereign bond yields and aggressive interest rate expectations continue to depress non-yielding risk assets like cryptocurrencies. Market participants are heavily focusing on sequentially dependent economic catalysts, including imminent central bank decisions and incoming legislative updates.