Finance

The Labor Department reported that the annual consumer inflation rate held steady at 3.4% in August, matching consensus forecasts. However, underlying core data came in slightly firmer than projected, indicating that inflation pressures remain persistent. Consequently, market participants aggressively raised the implied probability of a 25-basis-point interest rate increase at the upcoming Federal Reserve meeting to roughly 87%.

The yield on the benchmark 10-year U.S. Treasury note hovered near 4.96% after briefly touching 4.99%, its highest level in nearly three years. Fixed-income markets have faced heavy selling pressure driven by long-term inflation fears and geopolitical disruptions. Analysts warn that a sustained break above the 5% milestone could begin pulling significant capital out of equities and into more competitive bond instruments.

Brent crude futures declined roughly 2.8% to settle around $104.61 per barrel, pulling back from an overnight surge that neared $110. The volatile price action followed infrastructure closures in Saudi Arabia and military exchanges involving Iranian tankers. Prices cooled off late in the week following reports that Middle Eastern diplomats are seeking to negotiate a management framework for transit through the critical Strait of Hormuz.