Finance

The Dow Jones Industrial Average outperformed other major benchmarks with a nearly 800-point jump, largely fueled by a double-digit increase in Caterpillar's stock price. The industrial giant's robust earnings report and upgraded revenue outlook provided a substantial lift to the blue-chip index, offsetting concerns regarding capital expenditures in other sectors.

The U.S. economy grew at an annualized rate of 2% in the first quarter of 2026, showcasing resilience despite surging energy costs linked to conflict with Iran. While this growth exceeded the prior quarter's performance, the rise in Brent crude prices to as high as $126 has tempered some economic forecasts and intensified inflation concerns.

U.S. Treasury yields have reached their highest levels since March, with the 30-year bond yield approaching 5% as markets recalibrate interest rate expectations. Persistent inflation and elevated oil prices have led many traders to abandon hopes for a Federal Reserve rate cut in 2026, focusing instead on a potential rate increase by mid-2027.