Finance

Oil prices surged at the start of the week, with Brent crude rising over 3% to exceed $104 per barrel after U.S. leadership deemed Iran's latest response "unacceptable." The diplomatic stalemate is expected to prolong disruptions in the Strait of Hormuz, a critical transit point for global energy supplies. While crude had recently retreated from peaks above $125 on hopes of de-escalation, this latest development has reintroduced significant supply-side risks to the market.

U.S. Treasury yields remained relatively stable as investors awaited the release of April's Consumer Price Index (CPI) data scheduled for later this week. The 10-year Treasury note recently settled near 4.38%, while the 30-year yield has fluctuated around the psychological 5% threshold due to concerns over sticky inflation and increased bond supply. Market participants are monitoring whether the upcoming inflation report will influence the Federal Reserve's restrictive monetary policy stance.

The technology sector continues to lead the broader market, with the Nasdaq Composite reaching a fresh record above 26,000 last week. Strong demand for AI infrastructure has bolstered earnings for major players like Alphabet and Arista Networks, even as the sector undergoes structural shifts including significant job cuts linked to automation. Analysts note that while the tech rally shows signs of concentration risk, robust earnings beats are providing a durable foundation for current valuations.