Finance

Strong corporate earnings from blue-chip companies acted as a primary catalyst for the day's rally. Alphabet's stock surged approximately 10% following a blockbuster earnings beat and optimistic AI commentary, while Caterpillar saw a similar 10% spike after raising its annual revenue outlook due to high demand for data center infrastructure.

The yield on the 10-year U.S. Treasury note rose to roughly 4.42%, reaching a new four-week high as investors reacted to a non-unanimous FOMC decision. Although the Fed kept rates steady at 3.5% to 3.75%, dissenting votes and concerns over energy-driven inflation suggest that the central bank may keep interest rates elevated for a longer duration.

Global energy markets remain sensitive to the ongoing conflict with Iran, which has pushed oil prices to four-year highs and gasoline prices in California past $6 per gallon. Despite the geopolitical pressure, U.S. gross domestic product still expanded at a resilient 2% annual rate in the first quarter of 2026, even as war-related supply shocks began to impact business decisions.