Finance

Fixed income markets experienced significant pressure as the 10-year Treasury yield climbed to 4.63%, a 15-month high, while the 30-year yield breached the 5% threshold for the first time since 2007. These movements followed hotter-than-expected producer price data, which has heightened concerns that the Federal Reserve may maintain elevated interest rates to combat rising energy costs.

Despite geopolitical and inflationary headwinds, the first-quarter earnings season has demonstrated remarkable strength, with S&P 500 profits jumping approximately 28% year-over-year. This growth rate represents the strongest quarterly performance since 2021, providing a critical buffer for market valuations as investors await upcoming results from high-profile companies like Nvidia and Walmart.

Brent crude prices fell more than 2% to drop below $109 per barrel after announcements regarding a delay in military strikes against Iran eased immediate supply disruption fears. However, traders remain cautious as the Strait of Hormuz remains restricted, keeping physical oil flows tight and sustaining a floor under global energy prices.