Finance

Federal Reserve Chair Jerome Powell issued a stark warning in his final press conference, noting that the ongoing conflict with Iran is complicating the economic outlook. US inflation accelerated to 3.3% in March, driven largely by soaring energy and gasoline costs, leading traders to price out potential interest rate cuts for the remainder of 2026.

The U.S. Treasury yield curve continues to slope upward, with the 10-year note yielding approximately 4.39% as of early May. Higher-than-expected inflation data and steady bond supply have supported elevated long-end rates, even as the first-quarter GDP grew at a 2.0% annual pace despite regional geopolitical headwinds.

Investor sentiment in the artificial intelligence sector is becoming more selective, focusing on firms demonstrating real revenue growth rather than speculative potential. While chipmakers have seen a resurgence in demand due to anticipated supply chain disruptions, some analysts warn that rising capital expenditures are starting to weigh on broader market confidence.