Finance

Energy stocks emerged as a rare bright spot in the market, benefiting from crude oil prices remaining above $110 per barrel amid ongoing geopolitical tensions in the Middle East. Concerns regarding supply security through the Strait of Hormuz have continued to support the sector, driving the Energy Select Sector SPDR significantly higher while most other sectors faltered.

The yield on the benchmark 10-year U.S. Treasury note stabilized near 4.6% after reaching its highest levels since early 2025. This persistent upward pressure on yields is driven by shifting market expectations, with some analysts now pricing in the possibility of further Federal Reserve interest rate hikes later this year to combat energy-driven inflation.

The technology sector faced significant selling pressure as investors de-risked ahead of Nvidia's highly anticipated quarterly report. Shares of key AI infrastructure providers, including Micron and Applied Materials, saw sharp declines as the market scrutinized the sustainability of massive spending on artificial intelligence amid a high-interest-rate environment.