Finance

Alphabet shares fell sharply following the company's announcement of a plan to raise $80 billion through a major stock sale to fund expanding AI infrastructure. This move raised investor questions about the capital-intensive nature of artificial intelligence, even as other hardware players like Marvell Technology surged nearly 30% after being identified as a potential trillion-dollar enterprise.

Global energy markets remain tight as Brent crude trades near $95 per barrel due to the ongoing closure of the Strait of Hormuz. Persistent conflicts involving the U.S., Israel, and Iran have disrupted critical shipping chokepoints, leading to sustained cost pressures despite occasional diplomatic hopes for a ceasefire.

Cleveland Fed President Beth Hammack warned that persistently high inflation, driven by elevated energy costs, may require interest rates to remain at current restrictive levels or even move higher. Investors are increasingly cautious as the FOMC's target range of 3.50% to 3.75% faces pressure from data showing a pickup in manufacturing activity and production.