Finance

The technology sector experienced a significant boost after it was announced that Intel would begin manufacturing chips for Apple within the United States. This development caused Intel's stock to surge over 10%, leading a broader semiconductor rally that saw Nvidia and Micron Technology reach new milestones. The news helped push the Nasdaq Composite up nearly 2% during the week's final trading sessions.

In his first policy meeting as Chair, Kevin Warsh reinforced a tough stance on inflation, signaling that interest rate hikes remain possible before the end of 2026. While the Fed held current rates steady, the hawkish outlook caused a sharp spike in the 2-year Treasury yield, which saw its largest single-day jump in years. Markets are now adjusting to a 'higher for longer' rate environment as policymakers focus on price stability.

The signing of a memorandum of understanding between the US and Iran to reopen the Strait of Hormuz has led to a cooling of global oil prices. Brent and WTI crude benchmarks both eased as shipping traffic through the critical waterway began to normalize. This geopolitical development has been a primary driver for equity sentiment, providing a counterbalance to concerns over rising domestic interest rates.