Finance

Despite a record-breaking second quarter that added $2 trillion in market capitalization to firms like Intel and AMD, semiconductor stocks saw a sharp pullback on July 1. High-profile names including Micron and Nvidia faced selling pressure as investors secured profits following a 1H 2026 rally that saw some leveraged chip ETFs gain over 500%.

The second half of 2026 began with cautious trading as renewed hostilities between the United States and Iran weighed on investor sentiment. These tensions contributed to a lower opening for Wall Street's main indexes on Wednesday, despite a temporary ceasefire in late June that had previously stabilized global supply chains.

Market expectations for monetary policy shifted as nearly half of Federal Reserve officials now anticipate at least one interest rate increase in 2026 to combat accelerating inflation. This pivot follows previous projections of rate cuts, with policymakers now monitoring persistent price pressures driven by high oil costs and artificial intelligence demand.