Finance

Yields on the 10-year Treasury note hovered near 4.46%, approaching their highest levels since last summer as investors responded to hotter-than-expected producer price data. The 30-year yield also crossed the 5% mark, reflecting concerns that persistent inflation driven by geopolitical tensions will necessitate higher interest rates for a longer duration.

Market participants are closely monitoring high-stakes discussions between U.S. and Chinese leadership in Beijing, which has fostered optimism for a potential de-escalation in trade tensions. Early reports that the U.S. has cleared specific Chinese firms to purchase advanced artificial intelligence hardware have further supported large-cap semiconductor stocks.

U.S. retail sales rose by 0.5% in April, marking the third consecutive monthly increase despite a decline in overall consumer sentiment. While this growth was slightly below economist projections, a steady labor market with unemployment holding at 4.3% continues to support household spending amid rising energy costs.