Finance

The S&P 500 energy sector stood out as the sole positive performer among the index's eleven primary industries. Energy equities surged after crude oil prices rose, with Brent crude hitting a four-month high above $108 per barrel. The rally was heavily driven by geopolitical tensions and supply anxieties following Saudi Arabia's decision to close a critical pipeline that circumvents the Strait of Hormuz.

The Federal Open Market Committee commenced its highly anticipated two-day policy meeting on Tuesday against a backdrop of rising energy costs and elevated bond yields. Market expectations for a quarter-percentage-point interest rate hike have strengthened significantly, jumping past 90% as inflation concerns re-emerge. Investors remain highly focused on upcoming commentary from monetary officials to assess the future trajectory of borrowing costs.

Cryptocurrency assets experienced a sharp selloff after the sweeping Digital Asset Market Clarity Act failed to advance past a crucial procedural vote in the U.S. Senate. The legislation, which aimed to establish clear jurisdictional lines between the SEC and the CFTC, fell short of the 60-vote supermajority required to open floor debate. Following the legislative roadblock, Bitcoin dropped nearly 5%, while shares of crypto-exposed corporations like Coinbase suffered double-digit losses.