Finance

Semiconductor and AI-related stocks faced a significant retreat this week, with the Nasdaq 100 falling roughly 4.6% since Monday. Investor sentiment was dampened by reports that OpenAI might postpone its highly anticipated initial public offering to 2027, citing recent volatility and infrastructure spending concerns. Major players like Sandisk and Micron experienced sharp drops, erasing gains previously fueled by strong earnings reports earlier in the month.

Brent crude and WTI benchmarks saw a substantial decline of nearly 10% for the week as geopolitical tensions between the U.S. and Iran began to ease. The reopening of the Strait of Hormuz has allowed oil exports to return to nearly 75% of their pre-conflict levels, significantly reducing the risk of an energy-driven inflationary spike. This supply restoration has led to oil prices falling below $71 per barrel, providing a reprieve for fuel-dependent industries like aviation.

Yields on U.S. government debt moved lower on Friday as cooling oil prices eased immediate concerns regarding long-term inflation. The 10-year Treasury yield slipped to approximately 4.37%, while the 2-year note ended the week around 4.08%. Analysts noted that a recent report showing a slight decrease in consumer inflation expectations has reduced the perceived necessity for multiple aggressive interest rate hikes by the Federal Reserve later this year.