Finance

Despite overall weekly gains for the major indexes, the Nasdaq and S&P 500 were pressured by a sharp decline in chipmaker stocks. Shares of major players including Teradyne and KLA saw double-digit losses, reflecting a potential revaluation of the high-growth artificial intelligence trade that dominated the first half of 2026.

The Federal Reserve has raised its 2026 interest rate forecast to 3.8% as PCE inflation projections were adjusted upward to 3.6%. While many economists still anticipate a long hold, a growing minority of major financial institutions now expect additional rate hikes later this year to combat persistent price pressures.

The energy market is undergoing a significant transition rather than a simple price spike, with a notable rotation from technology into energy assets occurring in mid-2026. While oil prices have stabilized near pre-war levels, the sector remains sensitive to ongoing negotiations regarding shipping through the Strait of Hormuz.