Finance

U.S. Treasury yields spiked as traders reacted to strong inflation data and the conclusion of Jerome Powell's term as Federal Reserve Chair. The 10-year Treasury note yield rose to roughly 4.6%, its highest point in a year, reflecting a growing belief that interest rate hikes may be necessary later in 2026.

High-flying artificial intelligence and semiconductor stocks led the market decline following a U.S.-China summit that failed to produce major trade breakthroughs. Chipmakers like Intel and Micron saw notable losses, while Cisco Systems bucked the trend by jumping over 13% on strong earnings driven by AI infrastructure demand.

Oil prices continued to rise as the closure of the Strait of Hormuz and ongoing conflict in the Middle East pressured global supply. West Texas Intermediate crude remained above $100 a barrel, contributing to broader market volatility and reinforcing fears that energy shocks will keep inflation elevated.