Yields hit 5%, oil tops $100

The 10-year Treasury yield breached 5% while oil held above $100 a barrel due to Iran war supply shocks. Markets turned choppy but investors kept buying.

Stocks still rallying hard this year

The S&P 500 is up 10.8% year-to-date, the Nasdaq jumped 11.8%, and the Dow gained 8.4%. Markets in South Korea, Japan and Europe also rallied.

Fund managers stay overweight equities

Bank of America's survey of 170 investors managing $470 billion found 49% remained overweight global equities. Stocks were the most common overweight position of any asset class.

Earnings optimism at highest since 2021

Expectations for double-digit earnings growth over the next year hit their highest level since August 2021. 38% of respondents predicted a global economic boom.

BlackRock says AI supports growth

BlackRock strategists maintained their pro-risk stance, arguing AI investment can support growth and profits even as it absorbs capital and power.

“Higher rates and strong equities need not be contradictory, what drives yields matters.”

AI volatility creates buying opportunities

Recent AI sell-offs gave longer-term investors a chance to buy in. Data center buildout remains constrained by semiconductor wafers and power access.

The real AI question is demand

UBS's Mark Haefele said the key isn't whether frontier development slows, but whether AI demand and monetization keep expanding. His answer: yes.

“Stronger AI safeguards may reshape competition, but the proposals so far do not establish that the AI capex cycle is ending.”