Finance

Chipmakers experienced a significant turnaround with the Philadelphia Semiconductor Index surging 6.7% after massive market value losses the previous week. Major players such as Intel, Micron, and Marvell Technology saw substantial gains, partly driven by reports of major tensor processing unit orders from Google.

Persistent inflation risks and a stronger-than-expected May payrolls report have led market participants to price in a high probability of at least one Federal Reserve interest rate increase in 2026. Concerns remain that the PCE price index and upcoming CPI data may stay well above the central bank's 2% target, potentially forcing a more restrictive monetary policy.

U.S. Treasury yields have continued to rise, with the 2-year note exceeding 4% for the first time since mid-2025. The yield curve remains upward-sloping as the 10-year Treasury yield holds near 4.55%, reflecting investor demands for higher compensation amid sticky inflation and steady government debt issuance.