Finance

Crude oil benchmarks witnessed sharp price swings following reports of exchange fire between U.S. and Iranian forces. Brent crude hovered around the $100 per barrel mark as traders weighed the potential for supply disruptions against hopes for a diplomatic resolution. This ongoing volatility in the energy sector has significantly influenced broader market sentiment and inflation expectations throughout early May.

The 10-year Treasury yield rose toward 4.39% after a federal panel rejected President Trump's backup global tariff plan. Markets are closely monitoring bond yields as they reach levels that could signal potential weakness for equity markets in a high-interest-rate environment. Additionally, investors are awaiting the upcoming April nonfarm payrolls report to gauge the resilience of the labor market and future Federal Reserve policy.

Nvidia shares rose nearly 2% to bolster the tech-heavy Nasdaq, while other firms faced significant post-earnings selloffs. Arm Holdings saw a 10% decline following management warnings about smartphone market weakness, and consumer-facing brands like Shake Shack and Planet Fitness plummeted after reporting disappointing results. These performance disparities highlight a cautious market that is increasingly sensitive to specific sector supply chains and rising input costs.