Finance

Energy remains the top-performing sector in 2026, gaining roughly 20% since the start of the year compared to a relatively flat broader market. The outperformance is fueled by a surge in crude oil prices, which have approached or surpassed the $100 per barrel mark due to disruptions linked to the conflict in the Middle East and the closure of the Strait of Hormuz. Major firms like Exxon Mobil and Chevron have reported improved earnings expectations, though their shares fluctuated recently as oil prices saw a temporary pullback.

The yield on the 10-year Treasury note fell to 4.38% from recent highs of 4.40% as a report indicated softer-than-expected U.S. manufacturing growth. This retreat in yields was further supported by a cooling of oil prices, providing some relief to the bond market after a period of volatility. Investors remain cautious as long-term yields stay elevated due to persistent inflation concerns and a heavy supply of government debt issuance.

The cryptocurrency market showed resilience as Bitcoin maintained its position above $78,000, aligning with the broader upward momentum in U.S. technology stocks. Spot Bitcoin ETFs saw a reversal to positive net inflows after several days of losses, reflecting renewed institutional interest. Other major assets like Ethereum and Solana also posted gains, contributing to a total crypto market capitalization of approximately $2.68 trillion.