Finance

Amidst a broad market sell-off, energy shares stood out as the top performers on Friday. Brent crude surged past $110 per barrel, driven by escalating Middle East tensions and concerns over supply disruptions in the Strait of Hormuz. Major producers such as Exxon Mobil and Chevron posted gains as the energy sector benefited from a nearly 100% rise in oil prices since December 2025.

U.S. government bond yields climbed sharply at the end of the week, with the 10-year Treasury note reaching 4.48%, its highest level since July 2025. Investors are increasingly concerned that prolonged geopolitical conflict and surging energy costs will fuel inflation, leading markets to price in a lower probability of Federal Reserve rate cuts for the remainder of 2026. The 2-year and 30-year yields also advanced, reflecting a broad shift in interest rate expectations.

The technology-focused Nasdaq fell more than 2% on Friday as investors reassessed the high valuations of mega-cap stocks. Companies like Nvidia, Amazon, and Microsoft faced selling pressure due to concerns over the massive capital expenditures required for artificial intelligence and a shift toward risk-off sentiment. Additionally, regulatory and legal headwinds impacted social media giants Alphabet and Meta following recent court rulings regarding platform safety.

Digital assets experienced a sharp decline as Bitcoin fell below $67,000 and Ether dropped toward the $2,000 level. The downturn was exacerbated by approximately $300 million in leveraged long liquidations and renewed outflows from spot Bitcoin ETFs. Analysts noted that the crypto market is currently moving in tandem with traditional risk assets, reacting nervously to rising bond yields and global macroeconomic uncertainty.

Shares of Clear Secure plummeted 11% on Friday following an executive order signed by President Trump regarding TSA pay during a partial government shutdown. While the order ensures that airport security officers will begin receiving paychecks again, the uncertainty surrounding the shutdown's duration has weighed on companies tied to travel infrastructure. Despite the funding resolution for officers, broader market anxiety regarding the shutdown's economic impact persists.