US PCE Inflation Surges to 3.5% in March as Rising Oil Prices Pressure Markets

US inflationary pressures accelerated sharply in March, with the Personal Consumption Expenditures (PCE) index climbing 0.7% monthly and pushing the annual rate to 3.5%. This surge was primarily driven by soaring energy costs as Brent crude approached four-year highs amid escalating geopolitical tensions involving Iran. Core inflation, which strips out volatile food and energy components, remained stubbornly high at 3.2%, complicating the Federal Reserve's path toward potential rate cuts. Market reactions were fragmented; Meta Platforms saw its shares decline despite solid earnings, while Alphabet Inc. gained on robust cloud growth. These figures suggest a persistent inflationary environment that is likely to keep Treasury yields elevated and weigh on broader equity sentiment.