Finance

Defying the broader market selloff, energy stocks advanced significantly as Brent crude climbed toward $109 per barrel. Geopolitical tensions, particularly involving the conflict in Iran, have driven energy costs higher, raising concerns about persistent supply-side inflation impacting the global economy.

The latest Consumer Price Index report showed inflation accelerating to an annual rate of 3.8% in April 2026, the highest level in three years. This unexpected spike, largely fueled by rising energy and grocery costs, has led market participants to reconsider the timing of Federal Reserve interest rate reductions.

Bond yields jumped sharply as investors reacted to the inflationary threat of high energy prices, with the 30-year Treasury yield returning to levels last seen in 2007. The 10-year yield reached nearly 4.6%, heightening borrowing costs and pressuring the valuations of growth-oriented technology firms.