Failed US-Iran talks raise crude prices and erode Federal Reserve rate-cut odds

Cyclicals and financials in the Dow Jones Index face pressure as the odds of a Federal Reserve interest rate cut fade. This shift follows a rise in crude oil prices driven by Iran's statement that it will continue managing the Strait of Hormuz. The volatility stems from the first round of talks between the US and Iran in Pakistan, which ended without a concrete agreement after Iranians refused to accept US terms. Sticky inflation supports the hawkish outlook, with US consumer inflation jumping to 3.3% in March, moving further from the Federal Reserve's 2.0% target.