Finance

A historic selloff in the fixed-income market paused toward the end of the week as the 10-year Treasury yield retreated slightly from a peak of 5.22%. The yield pullback was driven by falling energy prices following reports that American and Iranian negotiators are holding discussions in New York to safely reopen the Strait of Hormuz. Despite the brief reprieve, yields remain pinned at elevated levels last seen in 2007 due to robust domestic economic performance.

The University of Michigan's final monthly reading showed that US consumer sentiment fell to a four-month low of 48.1 in September, down from 51.7 in August. Although the metric slightly beat preliminary expectations, elevated retail gasoline prices stemming from long-term overseas conflicts continue to dampen public outlook on the economy. Federal Reserve officials are monitoring the uptick in long-term consumer inflation expectations, which may threaten to complicate future interest rate policy.

Strong corporate earnings and high-profile tech collaborations continue to bolster the stock market against aggressive macroeconomic headwinds. Akamai Technologies saw its stock climb 7% after securing an $11.6 billion generative AI infrastructure deal with Anthropic. Robust quarterly profits from major companies like Costco Wholesale also beat Wall Street expectations, helping to support historically high S&P 500 valuations and drive a strong focus on mega-cap growth stocks.