Finance

While mega-cap software firms have faced valuation pressures, hardware and infrastructure companies supporting artificial intelligence buildouts have seen massive gains. Stocks such as Dell Technologies and HP jumped double digits this week, driven by sustained demand for data center power and networking equipment.

U.S. headline inflation accelerated to 3.8% in April 2026, largely driven by a nearly 18% jump in energy costs related to ongoing conflicts in the Middle East. Despite a recent dip in Brent crude to approximately $103 per barrel, persistent gasoline prices continue to weigh on consumer sentiment and maintain pressure on the Federal Reserve to keep interest rates elevated.

The 10-year Treasury yield eased slightly to 4.56% by the week's end, providing a reprieve for equities after previously touching its highest levels since early 2025. However, long-dated yields like the 30-year bond remain above 5.1%, levels not seen since 2007, as investors weigh the potential for a Federal Reserve rate hike later this year.