Finance

The 30-year U.S. Treasury yield climbed to 5.13%, its highest level since 2007, as traders reassessed the outlook for interest rates under new Federal Reserve leadership. This bond market rout was accelerated by hotter-than-expected April inflation data and a surge in energy costs driven by global geopolitical tensions.

Large-cap technology companies and AI leaders, including Nvidia and Amazon, significantly lagged the broader market during the mid-May downturn. Analysts suggested that the recent AI-driven rally may have overextended beyond fundamental valuations, prompting a sharp pullback in high-growth names.

Brent crude surged past $109 per barrel as shipping disruptions in the Strait of Hormuz continued to strain global supply chains. The persistent rise in energy prices is increasingly viewed by financial analysts as a major headwind for global economic stability and a driver of sustained inflationary pressure.