President Donald Trump, who appointed Warsh to replace Jerome Powell, has frequently signaled a preference for lower rates. Markets now face the challenge of deciphering whether Warsh will lean against the recent hawkish sentiment fueled by a resilient U.S. economy and volatile energy prices. His rhetoric during today’s press conference will be scrutinized for any shift in the Fed’s stance on future rate hikes.

Energy markets are simultaneously reacting to a preliminary U.S.-Iran memorandum of understanding. Brent crude hovered near $79 a barrel as reports surfaced that Washington may waive sanctions on Iranian oil. This development triggered a drop in bond yields, though analysts remain cautious about the timeline for increased supply given the damage to regional energy infrastructure. Meanwhile, U.S. markets showed divergence, with the Dow hitting a record high while the S&P 500 and Nasdaq struggled under pressure from the tech sector. SpaceX stood out, surging 5% to briefly eclipse Microsoft’s valuation.