Finance

The 10-year U.S. Treasury yield remained elevated near 5.3% even after a softer-than-expected August Personal Consumption Expenditures price index report showed inflation slowing to 3.4% year-over-year. Persistently high borrowing costs and changing investor expectations for future Federal Reserve rate cuts are heavily restricting valuation expansions across traditional asset classes.

An upbeat fourth-quarter financial forecast from memory chip giant Micron Technology supported broader market sentiment early in the trading session. The positive performance in the artificial intelligence supply chain filtered into major tech weights like Apple and Nvidia, helping the Nasdaq-100 contract gain ground over other indices.

Global energy markets continue to grapple with heightened geopolitical tensions as Brent crude hovers near $98 to $103 per barrel. Disrupted transportation pathways and potential threat escalations keep energy prices sticky, reinforcing systemic worries that inflation could rebound and trigger further hawkish monetary tightening.