Finance

Oil prices experienced a sharp decline of more than 4% as investor sentiment was bolstered by reports of a potential peace deal in the Middle East that could reopen the Strait of Hormuz. This retreat in crude prices helped ease near-term inflation concerns and contributed to a significant sell-off in major energy stocks like Exxon Mobil and Chevron.

Despite the record-breaking session for major indexes, a noticeable rotation out of tech saw leading chipmakers suffer substantial losses. Shares of Qualcomm and Marvell Technology dropped by more than 4% as traders booked profits, even as Micron Technology bucked the trend to maintain its new $1 trillion market valuation.

The yield on the 10-year Treasury note slipped to approximately 4.47% as falling oil prices reduced immediate pressure on inflation. While short-term 2-year yields also eased recently, recent bond auction data suggests that traders have largely removed expectations for Federal Reserve interest rate cuts through the remainder of 2026.