Finance

U.S. Treasury yields surged on Friday, with the 10-year note reaching 4.6% and the 30-year bond climbing above 5% for the first time since 2007. This upward movement was fueled by a fragile situation in the Middle East and a high-stakes summit between the U.S. and China that failed to produce concrete agreements. Market participants are increasingly resetting their inflation expectations, now fully pricing in a potential interest rate hike by early next year.

The technology sector experienced significant selling pressure as previous winners in the artificial intelligence rally, such as Nvidia and Amazon, saw their shares slide. Analysts noted that the rapid growth in these speculative assets reached a turning point as higher discount rates pressured valuation multiples. Despite the broader downturn, some firms like Cisco Systems bucked the trend, gaining over 13% following an earnings beat driven by heavy AI infrastructure demand.

Energy was one of the few winning sectors this week as WTI crude oil prices rallied past $100 a barrel due to supply disruption fears in the Strait of Hormuz. In contrast, agricultural commodities like soybeans and wheat saw double-digit losses on Friday. The divergence highlights a market increasingly sensitive to energy-driven inflationary shocks and changing geopolitical stances regarding global trade routes.