Finance

Energy prices surged as military strikes involving Iran and the potential closure of the Strait of Hormuz created significant supply concerns. Gasoline prices have climbed 40.5% over the past year, while fuel oil has seen an even more dramatic 58.9% increase, directly fueling broader inflationary pressures across the domestic economy.

Technology shares faced a significant sell-off led by Super Micro Computer, which plunged over 17% following the announcement of a $7 billion equity raise. Other industry leaders, including Nvidia and Micron Technology, extended their recent pullbacks as investors rotated out of high-valuation AI names ahead of major upcoming IPOs.

Expectations for interest rate cuts have largely vanished, with markets now pricing in the possibility of a rate hike by the end of 2026. Fed officials have expressed concern that persistent price pressures may require higher borrowing costs to bring inflation back toward the central bank's 2% mandate.