Finance

Global energy markets experienced sharp movements as Brent crude soared to finish near $110 per barrel, its highest level since May. West Texas Intermediate crude also approached the $100 mark amid reports of escalating Iranian attacks in the Strait of Hormuz. The massive spike in energy prices has raised widespread concerns over stubborn core inflation, putting additional pressure on global financial assets.

Investor enthusiasm surrounding artificial intelligence continues to cool down as markets increasingly scrutinize the immense capital and debt needed to fund data centers. Shares of Nvidia-backed compute provider CoreWeave came under renewed pressure due to its debt-heavy balance sheet. Major semiconductor equipment manufacturers like Micron Technology and Intel also tumbled heavily, with the broader chip sector marking prolonged losing streaks.

The Federal Reserve faces challenging policy conditions following higher-than-anticipated consumer and producer price index readings. While investors sought safety in long-dated bonds, newly appointed Fed Chairman Kevin Warsh refrained from detailing concrete monetary steps during his recent remarks at an international conference. Market participants remain highly sensitive to upcoming inflation data as they recalibrate borrowing cost expectations for the remainder of the year.