Finance

The technology sector experienced a significant sell-off this week, led by a 5.3% drop in chip stocks on Friday alone. While Micron surged earlier in the week following a strong earnings report, other major players like Onsemi tumbled over 20% after announcing a multi-billion dollar acquisition. Doubts regarding the long-term sustainability of the AI boom led many investors to rotate out of high-growth tech giants into more traditional economic sectors.

U.S. Treasury yields eased on Friday, with the benchmark 10-year yield falling to approximately 4.37% as oil prices retreated to levels seen before recent geopolitical tensions in the Middle East. This decline in yields followed consumer reports showing a slight decrease in one-year inflation expectations. However, some Federal Reserve officials have recently signaled that a rate hike may still be necessary by the end of 2026 due to persistent inflationary pressures.

The cryptocurrency market continues to experience a significant downturn, with the Fear & Greed Index plummeting to a cycle low of 18, indicating extreme fear among participants. Bitcoin has struggled to maintain its position above the $60,000 threshold, while Ethereum has dropped more than 20% since the beginning of June. Analysts note that low weekend trading volumes and persistent outflows from spot ETFs are contributing to the lack of directional momentum.