Finance

Energy markets saw relief as U.S. and Iranian officials reached an agreement to halt mutual attacks, raising prospects for a durable peace deal. Brent crude prices dipped toward $73 a barrel on expectations that full access to the Strait of Hormuz will be restored, alleviating recent global inflation pressures tied to supply disruptions.

Investors have rotated within the technology sector, favoring semiconductor suppliers like Micron and Intel over large hyperscalers. While the broader tech-heavy Nasdaq performed well quarterly, individual megacaps such as Microsoft and Meta have struggled recently, even as the chip industry's leading index nearly doubled in value since the start of the year.

The yield on the 10-year U.S. Treasury note rose to 4.40% after May job openings data exceeded analyst expectations, suggesting continued labor market strength. This data has reinforced a hawkish outlook for the Federal Reserve under new Chairman Kevin Warsh, with markets increasingly pricing out the possibility of interest rate cuts for the remainder of the year.