Finance

U.S. government bond yields surged to conclude the week as investors braced for the prospect of an extended monetary tightening cycle. The yield on the 10-year Treasury note moved upward to hover around the critical 5% mark, while the policy-sensitive 2-year Treasury note climbed to settle at its highest level since mid-2024. Market participants increasingly anticipate additional interest rate increases later this year due to persistent inflationary pressures.

Technology equities provided a buffer for the broader market, helping major indices snap back from a severe three-day slump earlier in the week. The tech sector and the PHLX Semiconductor Index notched a meaningful recovery as investors shook off near-term rate anxieties to invest heavily in artificial intelligence and mega-cap growth companies. This resurgence allowed the Nasdaq to stay in positive territory for the week despite significant macroeconomic headwinds.

Gold prices broke through recent resistance levels to surpass $4,400 per troy ounce, logging a weekly high as immediate inflation anxieties shifted. Concurrently, international energy benchmarks experienced downward pressure, with crude oil slipping below the $100 per barrel mark. This retreat in energy costs follows progress on restoring major oil infrastructure in Saudi Arabia, mitigating global supply shock concerns.