Finance

Technology giants have anchored the recent market gains, with Cisco Systems surging over 13% after significantly raising its revenue and earnings outlook. Nvidia also touched record levels as trade discussions during the U.S.-China summit in Beijing led to the clearance of advanced AI chips for select international firms, reinforcing the dominance of semiconductor manufacturers in the current market cycle.

Oil prices remain a central concern for investors as Brent crude trades near $107 a barrel due to the ongoing closure of the Strait of Hormuz. Sustained high energy costs are beginning to impact inflation expectations and bond markets, with analysts warning that a prolonged blockade could force the Federal Reserve to reconsider interest rate hikes late in the year.

The 10-year U.S. Treasury yield recently reached a one-year high near 4.5% as inflation remains sticky, with economists anticipating that the consumer price index could climb toward 4% in May. This upward pressure on yields has tightened financing conditions across the broader economy, particularly impacting rate-sensitive sectors even as high-growth technology shares remain resilient.