Finance

The U.S. Commerce Department revised its second-quarter GDP growth estimate upward to a 2.2% annualized rate, up from the previous projection of 1.5%. While this highlights underlying economic resilience, the robust data also reinforced expectations that borrowing costs will stay higher for longer. Consequently, Treasury prices dropped, causing the benchmark 10-year yield to settle near a historic multi-decade high of 5.29%.

Tech equities found a clear tailwind following a softer-than-expected reading on the Personal Consumption Expenditures price index, which indicated that core inflation eased to 3.0% in August. Rather than semiconductor companies leading the charge, market momentum was driven heavily by prominent consumer tech giants and software firms. Alphabet and Apple both notched notable gains of over 2% to help lift the Nasdaq Composite.

Energy markets remain highly volatile as military strikes and ongoing blockages in the Middle East stoke persistent fears over global supply disruptions. Despite a temporary drop in prices after cargo flows neared pre-war capacity levels, international oil and transport infrastructure damage continues to keep consumer prices inflated. West Texas Intermediate futures stabilized near $90 a barrel, contributing to broader market anxieties regarding sticky domestic inflation.