Finance

Brent crude and WTI prices dropped sharply, falling as much as 7% to 8% in a single session amid hopes for the reopening of the Strait of Hormuz. The decline in energy costs has provided immediate relief to sectors sensitive to fuel prices, such as airlines and cruise operators, which saw notable gains.

Robust first-quarter earnings results from major tech firms like AMD continue to fuel a broader market rally centered on AI infrastructure demand. Analysts note that AI-related capital expenditure is driving significant earnings growth that vastly outpaces the rest of the S&P 500, with hardware and semiconductor firms leading the surge.

U.S. Treasury yields across various maturities fell on Wednesday as the sharp drop in oil prices lowered long-term inflation expectations. The 10-year yield dropped to approximately 4.35%, retreating from recent nine-month highs as the market adjusted its outlook for potential Federal Reserve interest rate paths.