Finance

Energy markets faced sustained upward pressure as international benchmark Brent crude surged 3.7% to settle near $110 per barrel, extending a major year-over-year rise. Ongoing conflicts in the Middle East and a lack of a diplomatic breakthrough to end the regional war kept the energy complex on high alert. The ongoing spike in global fuel costs continues to feed persistent broader macroeconomic inflation fears.

Investor enthusiasm for artificial intelligence infrastructure wavered significantly as credit default swaps for GPU cloud provider CoreWeave hit record highs, indicating heightened debt stress. The software company's ongoing financial anxieties sparked a broader sell-off across the semiconductor index, which posted multiple consecutive days of losses. The retreat occurred despite attempts from prominent sector executives to reassure the market regarding the financial strength of AI ecosystems.

U.S. Treasuries drew strong safe-haven bids into the end of the week, pulling yields lower across the curve despite recent inflation readings coming in warmer than projected. Investors pivoted toward debt securities to escape equity market volatility, bolstered by patient commentary from Federal Reserve leadership. The absolute flight-to-safety trade indicated that market participants are scaling back expectations for aggressive future interest rate hikes.