Finance

Crude benchmarks tumbled following media reports that United States, Iranian, and Chinese leaders were discussing strategic negotiations to de-escalate regional tensions. International benchmark Brent crude futures dropped below $98 a barrel, while West Texas Intermediate fell past $92 a barrel. The decline offered relief to broader markets amid persistent concerns that disruptions at the critical Strait of Hormuz would cause energy costs to spiral.

A sharp global bond selloff took a breather at the end of the week, with the 10-year Treasury yield dropping from its intraday peaks to settle around 5.18%. Despite the late-week retreat, sovereign yields remain pinned near their highest levels since 2007. Robust domestic macroeconomic statistics and hawkish updates from Federal Reserve leadership have recently driven investors to expect interest rates to remain higher for longer.

The final consumer sentiment reading for September from the University of Michigan downshifted to 48.1, reflecting ongoing domestic unease over high fuel and living costs. Strikingly, consumer expectations for inflation over the upcoming year surged from 4.0% to 4.6%. Analysts warn that this upward movement could present a more complicated balancing act for central bank officials ahead of upcoming policy decisions.