Finance

The August consumer price index held steady at a 3.4% annual rate, matching economic forecasts, though core inflation came in slightly higher than expected. The underlying sticky pricing trends have reinforced market expectations that the Federal Reserve will raise interest rates at its upcoming meeting, with traders pricing in nearly a 90% probability of a rate hike.

U.S. Treasury yields hovered close to their annual peaks, with the 10-year yield briefly approaching the critical 5% threshold following a week-long surge in energy prices. Fears of prolonged inflation and elevated military tensions in the Middle East have continued to put pressure on global fixed-income markets, driving yields to their highest levels since 2023.

Brent crude futures experienced sharp price swings, spiking overnight to nearly $110 a barrel following pipeline disruptions in Saudi Arabia and geopolitical clashes involving Iran. Although prices pulled back nearly 3% on Friday amid reports of potential diplomatic shipping negotiations, energy benchmarks still recorded an overall weekly surge of up to 10%.