Finance

In his first major appearance at a central bank symposium, Fed Chairman Kevin Warsh noted that while business investment in artificial intelligence could expand economic capacity, current price levels remain too high. While he avoided definitive statements regarding an July rate decision, his remarks led to a brief retreat in Treasury yields as markets parsed his hawkish leanings.

The Russell 2000 index continued its strong momentum, nearing its longest streak of record closing highs since 2018. Small-cap firms have significantly outperformed larger indexes over the past year as investors seek opportunities beyond traditional AI leaders, showing resilience despite persistent concerns over high borrowing costs.

U.S. commercial crude oil stocks fell by 3.8 million barrels last week, marking the tenth consecutive weekly decline as exports remain elevated. While energy prices have retreated from recent peaks, renewed geopolitical tensions between the U.S. and Iran have kept market participants on edge regarding potential supply disruptions in the Strait of Hormuz.