Finance

U.S. Treasury yields spiked following reports of higher inflation linked to ongoing conflict in the Middle East and the closure of the Strait of Hormuz. The 30-year bond yield hit 5.12%, its highest level since 2007, while the 10-year benchmark climbed to 4.59% as investors adjusted to a higher-for-longer interest rate environment.

Technology stocks led the market decline, with notable losses in AI giants like Nvidia, AMD, and Intel. Despite recent momentum, investors took profits in the sector after April CPI data exceeded expectations, diminishing the likelihood of near-term rate cuts from the Federal Reserve.

Bitcoin and Ethereum faced downward pressure, with Bitcoin retreating toward the $78,000 to $80,000 range as traders turned risk-averse. While the advancement of the CLARITY Act in the Senate provided some regulatory optimism, rising bond yields and potential profit-taking have tempered recent bullish sentiment.