Finance

In the first policy meeting led by Chairman Kevin Warsh, the Federal Reserve maintained interest rates at 3.50% to 3.75% but adopted a notably more aggressive tone. Updated economic projections revealed that a majority of policymakers now anticipate at least one additional rate hike before the end of 2026 to combat persistent inflation. Deutsche Bank has further revised its outlook to predict two potential hikes totaling 50 basis points this year.

Oil prices retreated significantly after the United States and Iran reached a memorandum to end their conflict and reopen the Strait of Hormuz to maritime traffic. Brent crude futures fell approximately 9% over the course of the week, trading just above pre-war levels near $80 a barrel. This easing of energy costs has provided immediate relief at the pump, with U.S. average gasoline prices dropping below $4 per gallon for the first time in two months.

The technology sector remains the primary engine of market growth in 2026, recently bolstered by a high-profile manufacturing partnership between Intel and Apple. Intel shares surged more than 10% following the announcement, though some analysts warn that market leadership has become increasingly narrow. While the S&P 500 is up roughly 9.6% year-to-date, the experience beneath the surface is uneven, with healthcare and energy occasionally serving as defensive rotations during tech pullbacks.