Finance

Global oil prices experienced a sharp decline with Brent crude falling below $102 a barrel, a drop of nearly 7% in a single day. The sell-off was triggered by news that the U.S. and Iran are nearing a memorandum of understanding to end their maritime conflict in the Persian Gulf. Investors are betting that the restoration of tanker traffic will significantly lower fuel costs, which have recently pushed U.S. retail gas prices above $4.50 per gallon.

The technology sector outperformed the broader market following blowout quarterly results from Advanced Micro Devices, which saw its stock soar 17% to a record high. Robust demand for artificial intelligence accelerators drove the PHLX Semiconductor index up by 3.5%, bringing its gains for 2026 to approximately 60%. Competitors such as Intel and Broadcom also saw significant gains as investors increasingly view AI as a primary driver of corporate earnings.

U.S. government bond yields dropped sharply as the prospect of lower oil prices provided much-needed relief to the inflation outlook. The yield on the 10-year Treasury fell to 4.35%, marking its lowest level in a week and easing borrowing costs for mortgages and consumer loans. This downward shift in yields helped push equity prices higher by making riskier assets more attractive and signaling potential stability in future interest rate policy.