Good afternoon and welcome to Markets Desk.
Treasury yields are climbing, oil is pushing higher, and geopolitical risk is back on the radar — yet equity investors are holding their ground. The resilience stems largely from continued conviction around AI capital spending and a broadly supportive earnings backdrop, even as rate pressure tests valuations across the board.
That AI conviction connects directly to the next headline out of Silicon Valley, where OpenAI is said to be exploring a fresh funding round that could value the company at up to one point five trillion dollars. This comes just days after Sam Altman ruled out a public offering this year, suggesting the company is content to grow its war chest privately while the AI arms race accelerates.
Meanwhile, a serious geopolitical flashpoint is developing in the Middle East. Saudi Arabia is claiming Houthi forces targeted Mecca with a drone strike — a claim the Iran-backed group is flatly denying. The Organization of Islamic Cooperation has condemned the reported attack as heinous. Mecca is Islam's holiest site, and with Hajj pilgrimage activity in focus, any escalation here carries significant regional and energy market implications worth watching closely.
That's the tape. Markets Desk, signing off the floor.
