Finance

The semiconductor sector remains a primary driver of market momentum, with Micron Technology's valuation crossing the $1 trillion mark following a massive rally. Other industry leaders like SK Hynix have similarly reached the trillion-dollar threshold as investors continue to rotate into infrastructure plays essential for artificial intelligence. Despite these gains, some broader tech sectors showed signs of fatigue as the breakneck rally in megacap firms paused.

Energy stocks underperformed the broader market on Wednesday, with Exxon Mobil and Chevron both declining more than 1%. This sell-off followed a drop in U.S. crude prices, which fell over 5% toward $88 a barrel after reports suggested Iran might restore commercial traffic in the Strait of Hormuz. While the energy sector has been the year's top performer due to regional conflicts, volatility increased as diplomatic efforts to de-escalate hostilities gained traction.

U.S. government bond yields retreated on Wednesday, with the 10-year Treasury note yield slipping to approximately 4.48%. The decline in oil prices helped alleviate immediate inflation fears, leading investors to reduce their expectations for aggressive near-term interest rate hikes. Lower yields also provided some relief to the housing market, as national average mortgage refinance rates saw a modest dip.