Finance

Despite ongoing geopolitical tensions, financial markets rallied on reports of potential progress toward a ceasefire between the U.S. and Iran. While oil prices remained volatile due to the closure of the Strait of Hormuz, equity investors largely looked past immediate conflict risks toward a stabilized global trade environment.

The yield on the benchmark 10-year Treasury note finished the week at approximately 4.38%, retreating slightly from its recent highs. Markets are currently pricing in a high probability that the Federal Reserve will maintain its current policy rate of 3.5% through the remainder of the year.

The Nasdaq composite rose 1.7% on Friday, marking its sixth consecutive week of gains driven by strong performance in the semiconductor and AI infrastructure sectors. Capital expenditures from major tech firms like Alphabet and Microsoft continue to grow as they prioritize artificial intelligence and data center development.