A lot can change in a week.

Markets opened on shaky footing on Monday. Damage to Saudi Arabia's crucial East-West pipeline stoked worries about oil shortages and inflation, sending oil prices and bond yields higher. Meanwhile, stocks skidded after the leaders of three of the biggest AI companies called for the technology's development to be slowed down.

Just a few days later, both seem like a distant memory, as oil prices fall premarket and AI stocks jump. So what happened?

A big part of the more ebullient move can be credited to oil prices, which have fallen from an intraday high of $109.80 a barrel this week to around $103 today. That has helped send bond yields-the 10-year Treasury yield settled at its highest level since 2007 on Wednesday-retreating again.

The fall in oil has largely been driven by headlines, including a report from Bloomberg Wednesday that said Saudi Arabia is seeking to restore about half the capacity of its pipeline within days. A report by Reuters that China asked Iran to rein in Yemen's Houthis helped send prices even lower.

Another factor that has helped: investors' realization that the Federal Reserve may not be as hawkish as some expect. Central-bank officials signaled this week at least one more interest-rate increase over the next year-less than the three hikes that the market is currently pricing in.

Here's how markets are poised to finish the week:

-- Oil prices are currently about 1.5% lower for the week.

-- The 10-year Treasury yield is trading around 4.955%, down from 4.974% last Friday.

-- The tech-focused Nasdaq is up 0.3% through Thursday. Both the S&P 500 and Dow are headed for losses.