<div id="readability-page-1">A look at the day ahead in European and global markets from Stella Qiu Is the penny finally dropping for investors in stocks? The bond market has been sounding the alarm for weeks - runaway inflation means rate hikes are firmly back in play. The AI-fuelled rally looks like it's running out of road. Wall Street may have scaled fresh highs, helped along by a 4% pop in Nvidia as CEO Jensen Huang hitched a ride with Trump to Beijing, but it is a sea of red in Asia. Japan's Nikkei slid more than 1% after producer prices posted their biggest jump in three years, bolstering bets the Bank of Japan will hike in June. South Korea's KOSPI tumbled over 3%. Europe is staring down a roughly 1% drop at the open. And looming over everything is the Strait of Hormuz. Iran says about 30 ships are getting through, but that's still a trickle versus normal pre-war traffic. Trump, after talks with Beijing, is signalling impatience. Concerns are growing of the strait staying choked beyond June, draining global reserves and tipping the world into a full-blown energy crunch. Smart money in bond markets seems to be already bracing. Soft U.S. Treasury auctions this week were the warning shot, highlighting fading investor appetite just as inflation heats up. The latest 30-year sale cleared at 5% for the first time since 2007. Yields hit 5.061% on Friday, a 10-month high. Even the front end isn't safe, with the two-year pushing up to 4.055%, a one-year peak. With oil climbing and consumers still spending, markets are rapidly repricing the Federal Reserve's policy path. The odds of another rate hike this year have more than doubled in a week to 45%, even under Trump's pick to lead the Fed, Kevin Warsh. Put it all together, dialling it down might not be the worst idea for investors heading into the weekend. Key developments that could influence markets on Friday: -- Trump set to wrap up his state visit to China (Editing by Shri Navaratnam)</div>

Investors are facing challenges as bond yields surge, signaling potential rate hikes due to rising inflation. While Wall Street saw gains, Asian markets fell sharply, with Japan's Nikkei down over 1% and South Korea's KOSPI dropping more than 3%. Concerns about the Strait of Hormuz and soft U.S. Treasury auctions are adding to market volatility. The likelihood of another Federal Reserve rate hike this year has increased significantly, now at 45%. Investors may need to reconsider their strategies as they head into the weekend.

- Investors are grappling with rising inflation and potential rate hikes, leading to a cautious market outlook.  
- Wall Street experienced highs spurred by Nvidia's surge, while Asian markets fell, particularly Japan and South Korea, amid fears of tightened monetary policy.  
- Concerns over the Strait of Hormuz further complicate the situation, with expectations of energy supply disruptions possibly impacting global reserves.

fidelity

VG Mga Cap 300 Grw

VG Value

iShares Expanded Tech Software Sector ETF

iShares Core S&P US Growth

Invesco Nasdaq 100 ETF

SPDR S&P Software

Fidelity Nasdaq Composite Index ETF

First Trust NASDAQ-100 Equal Weighted

SPDR S&P 500

iShares Core S&P 500

Invesco QQQ Trust

Proshares UltraPro QQQ

ISHRS MSCI S Korea Capped

VanEck Semiconductor ETF

Direxion Semicon Bull 3X

VG S&P 500

iShares Core S&P US Value

VG Growth

SPDR Djia

iShares Semiconductor ETF

Schw Us L-Cp Grw

VG Mga Cap 300 Val

NVIDIA

NVIDIA Corporation

Morning Bid: Yield surge spoils the equity party