Finance

Technology shares retreated to start the week, driven by a sharp pullback in memory chip stocks and anticipation of upcoming quarterly results from industry leaders. Nvidia shares fell over 1% on Monday, reflecting a broader trend where mega-cap leadership is being tested by rising yields and high valuations. Market analysts are closely watching Wednesday's earnings report as a critical indicator for the continued strength of the artificial intelligence narrative.

Oil prices fluctuated significantly on Monday as investors reacted to ongoing conflict in the Middle East and reports of potential temporary waivers on Iranian sanctions. While Brent crude prices eased slightly in early trading, the sector remains underpinned by disruptions in critical shipping lanes like the Strait of Hormuz, which have pushed energy prices up nearly 18% year-over-year. These supply uncertainties continue to fuel inflation fears, keeping the Energy Select Sector among the few positive performers in recent sessions.

A selloff in global bond markets pushed US Treasury yields to 14-month highs this week, with the 30-year bond yield climbing above 5.1%. This movement is largely attributed to April's consumer price index rising 3.8% annually, which has cooled expectations for Federal Reserve interest rate cuts in the near term. Fixed-income investors are increasingly shifting allocations toward commodities and other assets better suited for a high-inflation environment as sovereign yields continue to reset globally.