Finance

U.S. Treasury yields retreated this week following reports that consumer inflation expectations have moved lower, despite remaining at elevated levels. The yield on the 10-year Treasury note fell to 4.37% on Friday, down from over 4.50% earlier in the week, reflecting a broader trend of declining yields over the last several weeks. This move provided some relief to interest-rate-sensitive areas of the market even as the Federal Reserve maintains a vigilant stance on price stability.

With technology and communication services seeing sharp weekly declines, investors increasingly favored defensive asset classes to mitigate risk. Healthcare was the standout performer, rising nearly 8% over the week to reach a record high, followed by significant gains in utilities and real estate. These sectors, known for stable dividends, provided a buffer against the volatility seen in the broader market and the semiconductor industry.

Chipmaker stocks experienced significant downward pressure, led by a 23.7% plunge in ON Semiconductor after it announced an all-stock acquisition of Synaptics. Sentiment was further dampened by reports that OpenAI may delay its initial public offering until 2027, raising concerns about the immediate sustainability of massive infrastructure spending in the AI space. Despite these headwinds, some individual firms like Micron saw notable price jumps earlier in the week following strong quarterly earnings results.