Finance

Recent quarterly earnings reports from prominent technology companies have raised concerns over excessive spending on artificial intelligence infrastructure. Alphabet shares plummeted roughly 7% after announcing a massive capital expenditure forecast, while Tesla tumbled nearly 15% following disappointing profit results and its first negative free cash flow in two years.

International oil benchmarks surged significantly due to escalating military tensions in the Middle East and attacks on shipping tankers in the Red Sea. Brent crude futures jumped roughly 7% to eclipse the $100-a-barrel threshold for the first time in two months, raising fears that higher energy costs could reignite global inflationary pressures.

The spike in global oil prices has triggered a widespread selloff in the fixed-income market, driving bond yields upward. The 10-year U.S. Treasury yield climbed to its highest level in over a year, shifting market expectations and pushing back against previous bets that the Federal Reserve would lower interest rates in the near term.