Finance

Despite the drop in market-weighted benchmarks, the S&P 500 equal-weighted index advanced by 1.6% this week, significantly outperforming its traditional counterpart. This shift highlights a broad rotation where investors are moving capital out of high-growth tech names and into smaller-cap companies and defensive sectors like healthcare and industrials.

Global crude oil prices fell sharply to end the week, with WTI crude dropping below $70 per barrel to reach its lowest level since February. The decline followed reports that oil tankers are successfully transiting the Strait of Hormuz after a recent U.S.-Iran agreement, effectively easing global supply concerns.

The 10-year U.S. Treasury yield fell for a third consecutive week, dropping to 4.372% as lower energy costs helped temper medium-term inflation expectations. Markets have begun to scale back bets on multiple interest rate hikes for the remainder of 2026, reflecting a more cautious Federal Reserve outlook.