Finance

U.S. government bond yields spiked as investors recalibrated for a higher-for-longer interest rate environment following the latest inflation reports. The 10-year Treasury yield finished at 4.59% and the 2-year note reached 4.09%, marking the highest levels for both benchmarks since February 2025.

Despite broader market volatility, large-cap technology stocks have continued to lead gains, with the Magnificent Seven accounting for more than half of the S&P 500's year-to-date performance. Institutional demand for AI-related infrastructure remains robust, even as some analysts warn that speculative valuations in the semiconductor space may be vulnerable to rising borrowing costs.

Crude oil prices surged above $110 per barrel in mid-May as ongoing conflict in the Middle East threatened supply through the Strait of Hormuz. While higher energy costs have pressured consumer discretionary sectors, U.S. domestic production has remained near all-time records, averaging 13.71 million barrels per day.