Finance

Investors are awaiting the May Consumer Price Index report, with projections suggesting a year-over-year increase of 4.2%. Stronger-than-expected labor data from the previous week has already heightened expectations that the Federal Reserve may implement interest rate hikes later this year.

Crude oil benchmarks climbed toward $92 per barrel as traders factored in a geopolitical risk premium following strikes near the Strait of Hormuz. The ongoing conflict has sparked fears of sustained supply disruptions, though some analysts suggest the current market is treating these events as headline risks rather than a macro shock.

The semiconductor industry has seen massive earnings growth, with U.S.-listed chipmakers rallying nearly 70% since early April. This extreme concentration in technology and AI infrastructure has effectively turned the S&P 500 into a long-duration asset highly sensitive to changes in discount rates.