Panos Mourdoukoutas

Major deals among tech giants and the successful Wall Street debut of SK Hynix shares boosted stock markets.

The sell-off in tech stocks came despite cooling inflation at both the retail and wholesale levels, which eased fears of an Federal Reserve interest rate hike.

Attention shifted from earnings and revenue beats to the rising cost of AI capital spending, casting doubts about future free cash flow.

Much of the growth came from businesses outside their traditional consumer lending operations.

Microsoft’s and Amazon’s quarterly results eased market anxiety about technology companies’ heavy AI spending.

Easing inflation and last week’s weak jobs report further raise the odds that the Fed will hold rates steady at its next meeting.

Rising bond yields weighed on investor sentiment.

‘It’s a reallocation inside the same wallet, not a collapse in demand,’ an analyst said.

Federal Reserve Chair Kevin Warsh reaffirmed the central bank’s commitment to maintaining price stability.

The U.S. 10-year Treasury yield hit 4.79 percent during the week, its highest level since January 2025.