Finance

Major indexes experienced sharp declines as investors moved away from high-flying technology leaders following a period of record highs in May. The S&P 500 and Nasdaq Composite both saw significant daily losses as enthusiasm for the semiconductor and artificial intelligence sectors began to show signs of cooling.

The yield on the 10-year Treasury note rose to 4.55%, while the 2-year note reached its highest level since February 2025 at 4.17%. Fixed-income markets are reacting to persistent inflationary pressures and a hawkish shift in market sentiment regarding future Federal Reserve actions.

Renewed conflict in the Gulf region, including threats to maritime chokepoints like the Strait of Hormuz, has pushed Brent crude futures back toward the $100 mark. While structural forces have kept prices from reaching worst-case scenarios, the volatility remains a critical headwind for global growth and inflation control.