Finance

The Federal Reserve is kicking off its two-day policy session with a primary expectation that interest rates will remain unchanged. Although recent de-escalation in Middle East geopolitical tensions has caused crude oil prices to drop and provided the central bank some breathing room, traders are still factoring in a minor probability of an unexpected rate increase.

Investors are shifting their focus toward upcoming quarterly reports from megacap firms including Amazon, Meta Platforms, Apple, and Microsoft. The highly anticipated data releases are projected to give critical insights into whether immense investments into artificial intelligence infrastructure are translating to sustainable revenue returns.

Crude oil futures extended their losses following a pause in hostilities and the possibility of diplomatic discussions between the United States and Iran. Meanwhile, safe-haven spot gold edged slightly higher as investors navigated geopolitical uncertainties and pre-Fed meeting anxiety.