Finance

Oil prices continued their upward trajectory as the Strait of Hormuz remains effectively closed to international maritime traffic. Brent crude surged past the $100 per barrel mark, trading near $110, while U.S. benchmark West Texas Intermediate climbed toward $97. This global energy shock is intensifying concerns over persistent inflation and its potential to disrupt the broader economic recovery.

Despite a general sell-off in software and large-cap tech stocks, chipmakers saw significant gains following positive quarterly reports. Intel shares soared over 25% in pre-market activity due to strong demand for artificial intelligence infrastructure and server solutions. Texas Instruments also posted a record high after reporting a 90% year-over-year increase in its data center division.

The yield on the 10-year U.S. Treasury note held steady near 4.3% as investors weighed geopolitical risks against sticky inflation data. Core PCE inflation remains more than 100 basis points above the Federal Reserve's target, leading to a cautious stance from central bank officials. Market participants are increasingly viewing fixed income as a viable source of real returns above inflation for the first time in a decade.

Bitcoin and Ethereum maintained elevated levels despite broader market volatility, with Bitcoin trading consistently above $78,000. Investors are increasingly viewing these digital currencies as apolitical assets that can hedge against geopolitical crises. While traders remain cautious due to the conflict in the Middle East, both major cryptocurrencies have secured gains of over 5% within the last week.

The first-quarter earnings season has delivered a contrast between companies benefiting from AI spending and those hit by rising operational costs. While Tesla's results were stronger than expected, its stock fell over 3% as investors reacted to a massive increase in capital expenditures for robotics. Conversely, software companies like ServiceNow and IBM faced steep declines following poorly received quarterly reports.