Finance

Despite record equity highs, futures markets dipped as investors weighed rising inflation data and elevated oil prices. April's consumer price index and producer price index reports both showed faster-than-expected increases, leading to growing concerns that the Federal Reserve may maintain or even raise interest rates in the coming months.

U.S. Treasury yields surged to their highest levels in over a year as persistent conflict in the Middle East impacted global energy supplies. The 10-year Treasury yield rose toward 4.5%, reflecting market expectations for sustained higher interest rates and a hawkish outlook from the Federal Reserve transition team.

Oil prices continued their upward trajectory, with West Texas Intermediate and Brent crude futures rising over 1% as tensions remain high in the Middle East. Traders are closely monitoring the security of the Strait of Hormuz, a critical global shipping route, which has driven crude prices up nearly 70% compared to last year.