Oil’s Reality Check: Markets Test Fed’s Nerve as Energy Prices Crack

THE OPENING BELL

WTI crude’s 4% overnight slide to $92.85 is forcing the question markets have been avoiding: was the oil shock already priced in, or are we getting the first crack in energy’s stranglehold on Fed policy? With diplomatic talks gaining traction and the 10-year yield holding steady at 4.57%, traders are positioning for the possibility that peak oil anxiety is behind us — but the Fed’s inflation calculus remains unchanged.

MARKET SNAPSHOT

Fed Funds Target Range: 3.5%-3.75%

10-Year Treasury: 4.57%