Tech Weakens as AI Revenue Doubts Emerge

The energy sector outperformed amid stable oil prices, with WTI and Brent crude holding near $90.77 and $103.25 respectively. The sector's 1.16% gain reflects investor confidence in its ability to withstand geopolitical and market fluctuations. Oil's stability follows President Trump's assurance of no immediate military action against Iran, which has eased geopolitical tensions.

The energy sector's strong performance contrasts with declines in other areas such as technology and utilities, which fell 2.71%. This rotation highlights investor preference for sectors with clearer revenue visibility and less sensitivity to shifting market narratives. Energy companies are expected to benefit from ongoing demand stability and reduced geopolitical risks.

The U.S. dollar weakened slightly as Treasury yields retreated, with the DXY index down 0.1% to 102.138. The easing dollar comes as the 10-year Treasury yield remains steady at 5.2399%, influenced by a decline in the 30-year yield following strong auction demand. The softer dollar has supported commodity prices, particularly precious metals.

Gold advanced towards $4,200 an ounce, while silver rose to $60.00, benefiting from lower yields and dollar softness. Investors are closely monitoring these movements as indicators of broader market sentiment, particularly in light of upcoming Federal Reserve decisions on interest rates.

Precious metals saw gains as a softer dollar and retreating Treasury yields boosted demand. Gold approached $4,200 an ounce, while silver and platinum also rose, reflecting increased investor interest in safe-haven assets. The move comes amid broader market uncertainty and expectations of continued monetary policy adjustments.

Platinum gained 2.2% to $1,670.15, and palladium climbed 2.1% to $1,146.98. These movements underscore the metals' role as inflation hedges and alternative investments during periods of dollar weakness and yield volatility. Retail interest is likely to continue as these dynamics persist in the financial markets.

Indian equities rallied, with the Sensex gaining over 400 points, buoyed by easing U.S. Treasury yields. The Nifty 50 index surpassed 25,000, reflecting positive investor sentiment driven by reduced borrowing costs and stable economic indicators. The rally aligns with a broader trend of emerging markets benefiting from relaxed U.S. monetary pressures.

The Indian market's performance highlights the global impact of U.S. yield movements, as lower yields typically enhance the attractiveness of riskier assets in emerging economies. Investors will be watching for further yield adjustments and their implications for international capital flows.