Chip stocks crash as oil prices rise, and Japanese and Korean stock markets follow suit; Japanese government bond yields soar back to 1997 levels—this inflation narrative has completely turned the page.

On May 16th, U.S. Treasury yields surged significantly, hitting multi-year highs of 4.595% for the 10-year and 5.127% for the 30-year, dampening stock attractiveness and intensifying inflation concerns, leading to a decline in the stock market. Chip stocks came under pressure, and rising oil prices rekindled inflation worries. Trump stated that the Strait of Hormuz does not need to be open, overseas markets weakened, with Korean and Japanese stock indices falling sharply, and Japan's 10-year government bond yield reaching its highest level since 1997.