Finance

Crude oil prices surged significantly following reports that military strikes near the Strait of Hormuz have severely disrupted shipping traffic through the vital waterway. Brent crude climbed over 5% to settle near $78 per barrel, raising concerns among economists that persistent energy price pressures could lead to stickier inflation and force central banks to maintain restrictive interest rate policies.

Market analysts have substantially raised profit expectations for the second quarter of 2026, with S&P 500 earnings growth now projected to exceed 23%. This optimistic outlook is largely driven by massive infrastructure spending in the technology sector, though some strategists warn that such lofty valuations leave little room for error as reporting season begins.

The Philadelphia Semiconductor Index outperformed the broader market, gaining over 2% following news that China may permit domestic AI firms to purchase limited quantities of advanced H200 chips. Additionally, individual chipmakers like Broadcom saw significant gains after announcing major new supply agreements with hardware giants like Apple.