Finance

U.S. Treasury yields surged after a $69 billion auction of two-year notes met with unexpectedly low demand, marking the weakest bid-to-cover ratio since May 2024. The two-year yield settled at 3.926%, its highest level since last July, as investors factored in persistent inflation risks tied to energy costs. This upward pressure on rates comes as markets recalibrate expectations for Federal Reserve policy amid a volatile geopolitical landscape.

High-valuation software stocks led a broader technology selloff, with the Nasdaq underperforming other major benchmarks. Companies like Microsoft, Alphabet, and Oracle saw significant declines as investors rotated away from growth-oriented names toward more defensive value sectors. Additionally, liquidity concerns in the private credit market, highlighted by redemption caps at major business development companies, have further weighed on tech sector sentiment.

Energy prices rebounded as industry leaders at the CERAWeek conference warned that emergency measures are failing to replace the 20 million barrels of oil lost daily due to the closure of the Strait of Hormuz. Brent crude climbed back toward $104 per barrel after a brief decline, underscoring the severe impact of the U.S.-Israel conflict with Iran on global supply chains. Executives emphasized that without reopening critical shipping lanes, energy and petrochemical costs will continue to soar through 2026.

The cryptocurrency market remained highly volatile but saw Bitcoin holding steady around the $70,000 level despite broader pressure on risk assets. Investors are closely watching a critical congressional hearing on tokenization and the potential for new legislative clarity through the CLARITY Act. Analysts suggest that a shift toward institutional ownership could support a significant long-term recovery, even as short-term price action remains tied to geopolitical headlines.