Finance

A global bond market rout has propelled sovereign borrowing costs to levels not seen in decades. The 30-year U.S. Treasury yield surged past 5.33%, touching its highest intraday level since 2007, while long-dated government debt yields in Japan and Europe also hit multiyear peaks. Investors are dumping bonds due to intensifying worries over heavy fiscal deficit spending, sticky inflation, and massive capital demands from the artificial intelligence industry.

Crude oil benchmarks advanced as geopolitical tensions in the Middle East continue to pressure global supplies. Stalled diplomatic negotiations over the conflict with Iran and threats to shipping routes in the Strait of Hormuz have heightened investor anxieties, causing West Texas Intermediate futures to trade near $85 per barrel. Amidst the broader market selloff, the S&P 500 energy sector emerged as a rare refuge, pushing to its first record high since late March.

U.S. stock futures stabilized flatly ahead of the opening bell after an overnight announcement that a 50% tariff on Canadian goods would be paused for three days. The decision followed intense, eleventh-hour negotiations between officials from both nations, resulting in a preliminary agreement subject to finalized documentation. While the direct economic impact of the targeted duties was expected to be minor, the deal provides a crucial signal ahead of broader trade framework discussions.