Market developments
Equities: Global equities rebounded firmly as a powerful recovery in technology and semiconductor names reversed a stretch of AI-trade derating. The S&P 500 rose 1.05% and the Nasdaq 1.59%, with chipmakers posting their biggest single-day advance since April 2025 as Microsoft jumped roughly 16% and Amazon about 12% on earnings. Europe was the standout, with the DAX surging 2.11% and the Stoxx 600 hitting a record high on Friday.
Fixed Income: U.S. Treasuries sold off at the long end as renewed inflation concerns and questions about the Fed’s policy response drove a bear-steepening of the curve. The U.S. 30-year yield from about 5.14% to 5.25%, near 2007 highs, while the 10-year rose to 4.71%. The 2-year edged down to 4.27%, steepening the curve. The Fed held at 3.50% to 3.75% in a hawkish 9-3 vote.
Commodities: Energy prices declined over the week as part of the geopolitical risk premium eased, although oil rebounded Friday as tensions around the Strait of Hormuz intensified. WTI fell approximately 5.1% over the week to around $84.70 per barrel, while U.S. natural gas declined about 3.7%.