US investment-grade issuers raised more than $65 billion on Tuesday, setting a new one-day record as companies rushed to tap steadier markets. Activity spanned nearly a dozen large borrowers across sectors, reflecting a broader financing push driven by AI-related spending needs and opportunistic timing amid geopolitical uncertainty.

Investors expecting the Federal Reserve to respond hawkishly to rising oil prices may be misreading the central bank's likely reaction, Bank of America said. The bank noted that energy shocks can also lead to steady rates or deeper cuts as policymakers balance inflation risks against a weakening labor market.

Oil markets experienced one of their most volatile sessions on record as Brent crude surged to $119 a barrel before plunging to $84 within 23 hours amid the Iran conflict. The extreme price swings widened trading spreads, forced some market participants to reduce activity and triggered heavy losses for traders caught on the wrong side of the move.

JPMorgan Chase has implemented significant markdowns on the value of loans serving as collateral for private credit groups, primarily targeting those tied to software companies. This move, which limits the amount of credit available to these groups, reflects the bank's increased caution amid concerns about credit quality and the potential disruption posed by AI to enterprise software. Unlike many peers, JPMorgan reserves the right to revalue these assets at any time, signaling a more proactive stance in risk management.

US regulators are preparing a revised draft of the Basel III endgame capital rules, with officials signaling potential changes in areas including operational risk and market-risk calculations. Banks view the update as a step toward addressing industry concerns as policymakers work toward a new proposal targeted for release later this year.

Rising oil prices linked to the Iran conflict are complicating the Federal Reserve's policy outlook as energy costs threaten to push inflation higher while the labor market weakens. Investors now expect the Fed to delay its next rate cut until September rather than July as policymakers weigh the inflation risks from the energy shock.

The Securities and Exchange Commission will maintain the December 2026 compliance date for central clearing of many Treasury cash and repo transactions. "Cash clearing is going to be the end of this year, repo clearing by next year," Chairman Paul Atkins said at an industry conference. The agency noted that firms have raised concerns about operational readiness but said implementation remains on track as industry groups continue preparations for the market-structure shift intended to strengthen stability and transparency in the Treasury market.