Finance

Energy markets remain volatile as traders monitor the shifting situation between the US and Iran, including potential strikes and discussions regarding the Strait of Hormuz. While crude prices briefly retreated on hopes of a 60-day ceasefire, they rebounded early Monday as a final peace agreement remained elusive. These developments have directly impacted global supply chain costs and influenced the performance of major energy sector stocks.

The technology sector continues to lead market gains, driven by substantial demand for artificial intelligence hardware and servers. Notable performers include Dell Technologies, which surged over 32% following strong results, and Micron, which surpassed a $1 trillion market capitalization milestone. Analysts note that while these AI-centric stocks are currently expensive, they remain the primary engine for recent market-wide record closes.

The 10-year Treasury yield is holding steady around 4.45% as recent inflation data, including a 3.3% rise in the core PCE deflator, signals persistent price pressures. Investors are increasingly pricing in the possibility of an interest rate hike before the end of the year, a sharp reversal from earlier expectations of cuts. This hawkish shift is supported by resilient economic growth figures and rising costs for housing and utilities.