Finance

U.S. government bond yields retreated sharply as newly released macroeconomic data eased pervasive fears regarding inflation. The yield on the 2-year Treasury note fell to around 4.14%, while the 10-year benchmark slipped to 4.64%. Market pricing now reflects a significantly higher probability that the central bank will keep monetary policy unchanged at its upcoming September meeting.

Brent and West Texas Intermediate crude futures dropped over 2% to trade around $87 and $81 per barrel, respectively. A downward revision to global demand forecasts alongside rising inventory numbers outweighed the ongoing geopolitical standoff between the United States and Iran. The decline in energy costs further diminished near-term inflation anxieties across major manufacturing and transport sectors.

While infrastructure demand remains exceptionally robust, investors are demonstrating stricter scrutiny regarding immediate returns on artificial intelligence investments. Shares of SanDisk rallied 14% after reporting strong long-term revenue forecasts, whereas companies like Cerebras and Cisco Systems plunged despite expanding workloads. Analyst commentary noted that companies must now explicitly detail capital expenditure yields rather than merely relying on general sector enthusiasm.