Finance

Technology shares faced renewed pressure as investors questioned the high costs of AI infrastructure compared to its immediate revenue potential. While memory chip makers like Micron saw massive gains following strong earnings, broader sector weakness was driven by price hikes at Apple and valuation concerns for heavyweights like Nvidia.

Global oil benchmarks, including Brent and WTI, saw sharp declines of nearly 3% as shipping traffic through the critical Strait of Hormuz increased. This easing of geopolitical supply concerns has brought prices back to levels seen before the recent conflict between the U.S., Israel, and Iran.

The yield on the 10-year Treasury note hovered around 4.39% after the latest PCE inflation report met market expectations. Although the Fed is widely expected to maintain higher interest rates for longer, the lack of an upside inflation surprise provided some relief to bond markets.