Markets Waver as Inflation Fears Battle AI Enthusiasm

Yields on government debt climbed, with the two-year Treasury reaching 4.741%, its highest close since July 2024. The 10-year note yield edged toward a 19-year peak at 4.995%, driven by rising commodity costs and uncertainty regarding Federal Reserve policy. Amid this climate, investors turned toward gold, which gained 0.6% to $4385.90 per ounce, even as oil futures retreated 1.6% to $100.30 a barrel following reports of Saudi Arabian export disruptions.

Technology stocks provided a buffer against broader market malaise. Shares of SanDisk climbed 11% to $1791.82, fueled by robust data-center demand. Analysts at Jefferies noted that recent warnings regarding AI safety risks likely triggered an overreaction, suggesting that regulatory interference remains improbable barring a major security incident. However, individual movers bucked the trend: Netflix shares fell 4.7% to $71.79 after a downgrade from Wells Fargo analysts citing a weak content pipeline.

In a historic leadership shift, Warren Buffett has stepped down as chairman of Berkshire Hathaway, concluding a tenure of over six decades at the helm of the $1 trillion conglomerate. His son, Howard, will succeed him as the company navigates this transition alongside wider shifts in corporate strategy, such as Disney’s appointment of former Character.AI executive Karandeep Anand as its first chief technology officer.