Finance

The technology sector is experiencing a sharp pullback led by chipmakers, following a period of extreme outperformance earlier in the year. High valuations and investor skepticism regarding the sustainability of artificial intelligence infrastructure spending have driven the Philadelphia Semiconductor index down more than 11% from its recent peak.

Crude oil futures climbed toward $80 per barrel on Monday after Iranian officials claimed the vital Strait of Hormuz waterway was closed. Although U.S. officials maintain the strait remains open for commercial traffic, the threat of prolonged military engagement has added a significant geopolitical risk premium to energy markets.

U.S. Treasury yields trended higher as investors weighed the inflationary impact of rising energy costs and impending congressional testimony from the Federal Reserve Chair. The 10-year Treasury note yield moved toward 4.58%, reflecting market concern that stubborn inflation and a steadier economy may keep interest rates higher for longer than previously anticipated.