Finance

The latest U.S. consumer price index report showed that headline inflation for August came in at an annual rate of 3.4%, aligning with economist projections. However, core inflation ticked up slightly faster than anticipated at 0.3% for the month. Following the release, market traders pushed the implied probability of an interest rate increase at next week's policy meeting to roughly 86%.

West Texas Intermediate crude oil prices touched $100 per barrel for the first time since May as intense regional conflicts led Saudi Arabia to temporarily shut its East-West pipeline. Although Brent crude futures pulled back roughly 2.8% on Friday to settle near $104.61, both benchmarks still secured sharp weekly gains. Energy complications were highlighted further as domestic diesel prices crossed a record high of $6 per gallon.

The 10-year U.S. Treasury yield hovered near a three-year high at 4.96% after briefly approaching the 5% threshold during volatile weekly trading. Yields faced upward pressure after a Treasury Department buyback operation accepted $5.2 billion in longer-term bonds, falling short of its maximum $6 billion target. Meanwhile, short-term debt reacted to tightening monetary policy expectations, with the 2-year yield climbing past 4.6%.