Finance

Crude oil benchmarks surged on June 3 as recent fighting between American and Iranian forces heightened supply security concerns. Brent crude climbed over 4% to exceed $101 per barrel, marking a substantial year-over-year increase and driving gains in the energy sector even as the broader market declined.

The yield on the U.S. 10-year Treasury note rose to 4.49% after an ADP report indicated private sector job growth exceeded analyst expectations for May. This resilience in the labor market, combined with inflationary pressure from rising energy costs, has led market participants to price in a higher probability of a Federal Reserve rate hike before the end of 2026.

Large technology firms including Meta Platforms and Oracle have raised approximately $250 billion in debt markets so far in 2026 to fund rapid expansions in AI infrastructure. Analysts suggest this surge in capital expenditure is contributing to higher long-term yields as companies compete with the government for borrowing capacity.