Finance

Artificial intelligence related stocks, including Nvidia and Oracle, experienced sharp declines due to emerging skepticism regarding the long-term profitability of large language model developers. These concerns were exacerbated by reports that OpenAI missed internal targets and faced significant challenges in funding the infrastructure required for next-generation data centers.

The yield on the 10-year Treasury note climbed to approximately 4.37%, its highest level in a month, as the Federal Reserve began its two-day policy meeting. Market participants are increasingly concerned that rising energy costs and the continued closure of the Strait of Hormuz will lead to a persistent inflationary spiral, potentially limiting the Fed's ability to cut rates in 2026.

Crude oil futures jumped over 5% to exceed $100 per barrel as the Strait of Hormuz remained closed, sparking fears of global supply shortages. Despite a peace offer from Iran to halt ship attacks, US officials expressed skepticism, maintaining a naval blockade that has kept energy markets in a state of heightened volatility.