Finance

Shares of Alphabet and Tesla suffered steep declines after delivering their quarterly corporate updates. Despite reporting strong revenue gains, Alphabet shares fell roughly seven percent as the company elevated its full-year capital expenditure forecast up to $205 billion. Meanwhile, Tesla shares plummeted nearly 15 percent following lower-than-expected profits alongside statements that the firm is headed for a massive spending year to build out artificial intelligence initiatives.

Crude oil prices advanced heavily, with international benchmark Brent crude topping $100 a barrel for the first time in two months. The spike in energy costs was fueled by widening military conflict in the Middle East and attacks on tankers in the Red Sea. U.S. benchmark West Texas Intermediate futures similarly advanced to settle above $92 per barrel, compounding global supply fears.

The rapid ascent of oil prices sparked fresh fears of persistent inflation, prompting a selloff in the fixed-income market. The yield on the benchmark 10-year U.S. Treasury note shot up to roughly 4.70%, hitting one of its highest marks in a year and a half. These climbing yields reflect a shift in market expectations, with traders scaling up bets that the Federal Reserve will raise interest rates to combat rising energy costs.