Global markets navigated a landscape of hawkish central bank sentiment and rising commodity prices. The ECB raised interest rates to 2.5%, preparing for "longer-lasting" inflation, while a US Treasury bond buyback aimed to support liquidity.
Oil prices surged, with Brent above $100 and US crude inventories falling, driven by new war concerns and tighter supply outlooks. This pushed energy stocks higher, with Devon and Williams leading new top picks. The 30-year mortgage rate also crossed 7%, hitting a one-year high.
AI continued as a dominant theme, with OpenAI integrating with Yelp and launching ChatGPT for financial services. Nvidia's Huang noted the AI buildout is still early, driving continued interest in chip stocks. Yelp shares rose on the news.
Watch for tomorrow's CPI report and Michigan consumer sentiment data for further market direction.