Finance

U.S. central bank policymakers voted unanimously to raise the benchmark interest rate by 25 basis points to a range of 3.75%-4.00%, marking the first hike since 2023. Remarks from Fed Chairman Kevin Warsh and Governor Michael Barr signaling that further policy tightening may be required to combat persistent inflation caused an initial surge in stock indexes to turn into steep intraday losses.

Brent crude oil prices eased toward $105 per barrel, stepping back from multi-month highs that recently surpassed $108. The moderation in energy markets follows reports that United States and Iranian negotiators are examining a phased agreement to secure and reopen the critical Strait of Hormuz shipping lane, providing a mild relief valve for global inflation concerns.

Tech shares found support through major corporate moves, including Akamai Technologies jumping double digits after securing a multi-year partnership with Anthropic. Additionally, robust demand for hardware and artificial intelligence developments helped major sector heavyweights like Advanced Micro Devices briefly reach a historic $1 trillion market capitalization.