Finance

Global energy prices spiked as Brent crude surpassed $110 per barrel following military incidents and a rejected ceasefire proposal in the Persian Gulf region. This surge in energy costs has intensified investor concerns regarding persistent inflation and the potential for a global economic slowdown.

The yield on the benchmark 10-year Treasury note climbed to 4.44%, its highest level since mid-2025, as investors adjusted to a higher-for-longer interest rate outlook. Weak demand at recent government debt auctions further pressured bond prices, with many now speculating the Federal Reserve may be forced to hike rates again before the end of 2026.

Technology heavyweights and consumer discretionary stocks were among the hardest hit during Friday's session, with companies like Amazon and Nvidia seeing notable losses. High energy prices and legal pressures on social media platforms have particularly weighed on the tech-heavy Nasdaq, which is now down nearly 13% from its October high.

The digital asset market mirrored the broader risk-off sentiment in equities, with Bitcoin dropping to a two-week low and liquidating roughly $300 million in long positions. While some analysts remain bullish on year-end price targets, retail investors have driven widespread selling as the CoinDesk 20 Index saw nearly all its constituents decline.

In corporate news, Carnival Corporation's latest earnings report highlighted the severe impact of unhedged fuel exposure on the travel sector during the current energy crisis. Despite strong booking volumes, rising bunker fuel costs have significantly compressed margins, leading investors to discount past performance in favor of geopolitical risks.