Finance

Government bond yields spiked significantly, with the 10-year Treasury note hitting 4.6% and the 30-year yield surging past 5.1%, its highest level since 2007. This sharp rise in yields reflects growing market expectations that the Federal Reserve may need to remain restrictive or even consider further interest rate hikes later this year.

The energy sector was the sole outlier in the S&P 500, advancing over 2.3% as crude oil prices continued to climb due to geopolitical instability. Brent crude surged toward $109 per barrel following unsuccessful diplomatic efforts to resolve shipping disruptions in the Strait of Hormuz.

The tech-heavy Nasdaq led the market lower as prominent artificial intelligence companies and chipmakers experienced significant profit-taking. High-risk assets, including mega-cap technology firms like Nvidia and Amazon, lagged as investors rotated out of high-growth sectors in response to the spike in borrowing costs.