Finance

Technology sector performance remains divergent as heavyweights report quarterly results. While Alphabet saw significant gains driven by blowout cloud-computing growth, Microsoft and Meta faced pressure due to investor concerns over the high capital expenditures required for artificial intelligence infrastructure.

Preliminary data for the first quarter of 2026 indicates the U.S. economy grew at an annualized rate of 2.0%. However, the Core PCE index rose to 3.2%, marking a three-year high that suggests the Federal Reserve may maintain elevated interest rates to combat persistent price pressures.

Brent crude has returned to levels above $110 per barrel as persistent disruptions in the Strait of Hormuz trigger a record supply shock. While the broader equity market has remained resilient, analysts warn that sustained high energy costs could eventually dampen consumer spending and global economic growth.