Finance

High demand for AI infrastructure continues to fuel massive gains for a small cohort of mega-cap tech companies, including Nvidia and Dell. Software firms also experienced a significant rebound, with Oracle and ServiceNow seeing sharp price increases as investor fears regarding AI-driven displacement began to subside. Analysts note that these few names are responsible for a disproportionate share of the year-to-date earnings growth for the broader market.

Escalating military tensions between the U.S. and Iran have pushed Brent crude prices toward $95 a barrel after reports of potential closures in the Strait of Hormuz. This geopolitical volatility has placed the energy sector among the few gaining industries while simultaneously pressuring broader market sentiment. Speculators are increasingly moving to the sidelines as the risk of protracted conflict threatens to accelerate inflationary pressures.

U.S. Treasury yields rose across the curve, with the 2-year yield reaching approximately 4.05% and the 10-year yield climbing to around 4.51%. These movements reflect growing market skepticism regarding imminent interest rate cuts by the Federal Reserve, especially as core inflation data remains stubbornly above target. Investors are now closely monitoring the transition of leadership at the Federal Reserve and upcoming employment reports for clearer policy signals.