Finance

Crude oil prices surged significantly today, with West Texas Intermediate gaining over 7% to settle above $107 per barrel. The rally followed reports that the U.S. is preparing for an extended naval blockade of Iranian ports and has rejected proposals to reopen the Strait of Hormuz. These geopolitical developments have raised concerns about supply disruptions and fueled inflationary pressures that are complicating the Federal Reserve's policy path.

The 10-year Treasury yield jumped more than 5 basis points to reach 4.41% following the Fed's decision and the continued rise in energy prices. This movement brings the benchmark yield close to its 2026 high of 4.439% recorded in late March. Rising yields reflect growing market skepticism regarding potential interest rate cuts this year, as investors adjust for a 'higher for longer' rate environment driven by persistent energy-led inflation.

The Nasdaq Composite managed a slight gain today even as major semiconductor firms like Nvidia and Microsoft weighed on the sector. While Alphabet and Amazon saw positive movements in after-hours trading following earnings beats, Meta and Microsoft experienced declines as investors scrutinized the massive capital expenditures required for artificial intelligence. Analysts are closely watching whether the unprecedented $600 billion industry-wide spend on AI infrastructure will yield the expected profit growth.