Finance

Market-implied probabilities for a 25 basis point interest rate hike at the upcoming Federal Reserve policy meeting have climbed to nearly 90%. Fresh macroeconomic data revealed that while annual headline inflation stabilized at 3.4%, the month-on-month core consumer price index rose faster than expected. The underlying concerns over persistent inflation have kept the U.S. 10-year Treasury yield elevated near 4.97%, testing equity valuations across Wall Street.

Brent crude oil climbed above $108 a barrel as supply risks magnified following targeted drone attacks in the Middle East. Saudi Arabia was forced to halt operations on its critical East-West pipeline to mitigate risks away from the Strait of Hormuz, threatening a prolonged supply shortfall. Hopes for brief diplomatic resolutions dimmed further after a scheduled meeting between Gulf states and Iran was officially delayed.

The premier cryptocurrency demonstrated relative stability, hovering around $77,000 and showing resilience against the sharp downward movements seen in equity markets. This steady behavior occurs despite macroeconomic pressures, a sudden unwind in derivatives leverage that triggered substantial futures liquidations, and consecutive daily net outflows from spot Bitcoin exchange-traded funds. However, alternative asset classes like gold faced selling pressure, losing ground as rising Treasury yields dulled the appeal of non-yielding assets.