Rising bond yields and oil prices weighed on equities this week, as renewed volatility in the AI sector challenged investor confidence in one of the market’s primary growth themes. The S&P 500 edged down approximately 1.43%, while the Nasdaq Composite declined 2.05%, ending their three-week upward momentum. The Dow Jones Industrial Average slipped by 0.85%. A significant portion of the selling pressure originated from the bond market, where long-term yields climbed to levels not witnessed in nearly two decades, driven by geopolitical tensions with Iran that lifted oil prices and reignited inflationary concerns. In response, the Treasury Department announced on Wednesday morning that it would significantly expand its buyback program for longer-term government securities. Yields briefly retreated and stock markets saw a short-lived rally following the disclosure, which market observers interpreted as a measure to sustain the ongoing equity rally. However, the positive sentiment was fleeting, as yields resumed their upward trajectory by Thursday and Friday due to persistent inflation fears fueled by rising crude costs. The AI sector also experienced considerable turbulence this week, with a wave of headlines highlighting political resistance to large data center projects potentially contributing to the decline. Among these developments was an executive order issued by Pennsylvania Governor Josh Shapiro on Tuesday, imposing stringent requirements for data center construction within the state. On Friday, Jim Cramer weighed in on whether such measures might meaningfully hinder the expansion of data center infrastructure or merely reflect election-year posturing. Infrastructure-related stocks bore the brunt of the sell-off, with GE Vernova and Eaton shares dropping 10% and 7.2% over the week, respectively. Taking advantage of the dip, we increased our investment in GE Vernona on Tuesday, though the stock continued to slide afterward. Below is an analysis of the key factors shaping market dynamics this week. 
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