President Trump threatens to resume strikes on Iran if no deal reached, raising risk of return to active hostilities in Persian Gulf and further energy market disruption.

Elevated energy prices are driving a global bond selloff pushing yields to multi-year highs, dragging stocks lower, with Brent above $110 and 30-year yields hitting new levels, fueling Fed hike fears.

Asks Jean Chia what she makes of the surge in bond yields.

The bond selloff is a recalibration of inflation expectations. The oil price shock is eating into CPI numbers globally, catalyzing a repricing of central bank rate trajectories. This is an adjustment period.

Asks whether yields will stay at these levels or climb further.

There is risk of an overshoot in bond yields. The 30-year hit over 5% and 10-year reached 4.5%, which are technical levels. For long-term investors there could still be demand at the right price, but technical factors could lead to a prolonged period of yields trending higher.

Asks why she is still upgrading US equities when high yields historically hurt equities.

It depends on why yields are high — oil price shock vs fiscal concern. Q1 earnings and guidance have positively surprised. The wider US market trades at attractive valuations outside the concentrated top. The Trump-Xi summit provides impetus for the US to seek an off-ramp in Iran; any correction would be a buying opportunity.

Asks about implications of Samsung labor strike for AI supply chains.

AI is a structural trend. The hyperscalers were the first crowded trade, now semiconductor supply chain is the next concentration. We are cautious on overly crowded spots exacerbated by leverage ETFs. AI exposure needs to broaden into energy, power consumption, and electrification. Samsung and TSMC are clear beneficiaries; any valuation normalization from the union event could be an opportunity to trim concentration or buy weakness.