Finance

WTI crude oil prices climbed above $100 per barrel, fueling fears that persistent energy-driven inflation will prevent the Federal Reserve from cutting interest rates. Market sentiment has shifted toward the possibility of a rate hike later in 2026 as producer and consumer price reports showed sharper-than-expected increases.

The 10-year Treasury yield surged to approximately 4.6%, its highest level in a year, while the 30-year yield hit its highest point since 2007. These moves were exacerbated by the ongoing war in Iran and a perceived lack of major policy breakthroughs following a high-profile summit between the U.S. and Chinese presidents.

High-flying artificial intelligence leaders including Nvidia and Intel experienced sharp sell-offs as traders rotated out of high-risk assets. Despite some positive earnings beats, tech giants were pressured by Beijing's decision to block certain chip sales for trade review and a general cooling of the recent 'AI super-cycle' momentum.