Finance

Crude oil prices surged as much as 3.3% on Friday, with Brent crude climbing above $109 per barrel. This energy shock, driven by geopolitical tensions in the Middle East, has intensified fears that inflation will remain well above the Federal Reserve's 2% target, potentially delaying expected interest rate cuts.

The technology sector led the market downturn as investors locked in profits from recent artificial intelligence winners. Major chipmakers such as Nvidia, Intel, and Micron saw significant declines, and recent IPO Cerebras Systems shed 10% of its value following a prior-day surge.

As Kevin Warsh prepares to take the helm at the central bank, he faces a challenging economic landscape marked by a 3.8% consumer inflation rate. Although the new chair has indicated a preference for lower rates, persistent price increases and a resilient labor market have led traders to price out expectations for rate cuts in 2026.