Finance

The latest consumer price index showed headline inflation holding steady at 3.4% annually, but a hotter-than-expected core monthly reading of 0.3% created fresh concerns. Investors and market analysts heavily adjusted their expectations following the data, with implied probabilities for a central bank rate increase at the upcoming policy meeting surging toward 90%. Analysts note that resilient consumer spending and ongoing corporate investments are keeping nominal economic growth strong enough to withstand tighter policy.

Ongoing military conflict in the Middle East and disruptions to key Saudi Arabian pipelines caused crude prices to remain highly volatile, with West Texas Intermediate touching the triple-digit mark. Although prices slightly moderated by Friday's close, the persistent energy spike continues to fuel broader inflation fears and pressure global fixed-income markets. Consequently, the 10-year Treasury yield hovered near 4.96%, matching levels not seen in nearly three years and intensifying borrowing headwinds for growth equities.

Digital assets experienced notable downward momentum as the prospects of higher-for-longer interest rates reduced investor appetite for non-yielding holdings. Bitcoin slid below the $77,000 threshold, marking its lowest trading valuation in about two weeks and down roughly 10% since the start of the year. The broader crypto selloff was reflected in a retreat of spot ETF inflows, alongside steep single-day losses for heavily exposed digital asset equities like Coinbase.