Finance

While the semiconductor industry has seen its market capitalization swell to over $9 trillion due to an AI-driven buildout, other tech sub-sectors are struggling. Software application stocks have notably declined by roughly 26% over the last six months as investors shift focus toward hardware and infrastructure providers like Broadcom and Intel.

Concerns over sticky inflation have resurfaced as the Consumer Price Index accelerated to 3.8% year-over-year in April. This persistent price pressure has led some Federal Reserve officials to signal a possible move toward interest rate hikes later this year, departing from previous expectations of easing.

The U.S. has upwardly revised its crude oil and natural gas production forecasts for 2026, aiming for record levels to meet surging demand from data centers and the industrial sector. Market participants remain cautious, however, as ongoing tensions near the Strait of Hormuz continue to influence global energy pricing and supply chain stability.