The US 10-year Treasury yield closed at 5.3% on Tuesday, its highest level in 24 years, even as the Nasdaq Composite notched its 23rd record high of 2026, driven by continued enthusiasm for AI infrastructure. Nvidia shares gained more than 2%, pushing the chipmaker's market value close to $6 trillion. Markets are also watching oil prices, which have been swinging on US-Iran talks over the Strait of Hormuz, with a US response to Iran's proposal expected today. Despite climbing bond yields, the odds of a Federal Reserve rate hike this month have eased, as strong corporate earnings and AI-driven demand continue to outweigh broader concerns about borrowing costs.
