Finance

A stronger-than-expected May employment report, which showed 172,000 new jobs added, has shifted market sentiment toward a "higher for longer" interest rate environment. Treasury yields surged in response, with the 10-year yield crossing the 4.5% threshold as traders now price in a high probability of a Federal Reserve rate hike by the end of 2026.

Escalating conflict between Israel and Iran has pushed crude oil prices toward $97 per barrel, fueling broader inflationary concerns. Paradoxically, gold prices have retreated to a two-month low as the rising cost of energy increases the likelihood of further interest rate hikes, making non-yielding assets less attractive than bonds.

Beyond the technology sector, several companies reported robust fiscal results, with G-III Apparel and ABM Industries surpassing analyst estimates. Healthcare giants Merck and Eli Lilly have also emerged as stable leaders, with the former reporting solid sales growth driven by flagship oncology treatments and a deep product pipeline.