Finance

The 30-year Treasury yield surged to 5.127%, marking its highest closing level since July 2007. This spike in borrowing costs was driven by persistent inflation fears linked to rising energy prices and a shifting outlook for Federal Reserve policy, which now reflects increased odds of a rate hike by year-end.

Surging oil prices, largely attributed to ongoing conflict involving Iran and disruptions in the Middle East, have rattled global bond and equity markets. While the S&P 500 energy sector remained a relative winner for the week, broader market sentiment was dampened by concerns that higher fuel costs will force central banks to keep interest rates elevated for longer.

High-flying AI stocks experienced significant pullbacks as investors locked in gains, with names like Nvidia falling over 4% on Friday. Despite the broader tech sell-off, Cisco Systems shares surged more than 13% after reporting a strong quarterly beat fueled by massive demand from AI hyperscalers and announcing a restructuring plan.