Finance

A reported contraction in July retail sales alongside soft consumer confidence figures has amplified market expectations that the Federal Reserve will pause its tightening cycle. Investors increasingly anticipate the central bank will keep rates steady during the upcoming September policy meeting. The cooling inflation readings have shifted the majority of economist forecasts away from further near-term hikes.

Shares of chip equipment manufacturer Applied Materials fell roughly 5% after its upbeat quarterly financial forecast failed to clear elevated investor expectations. The downward movement added broader selling pressure to the technology sector, dragging down other prominent chipmakers like Broadcom and Intel. The declines reflect a growing nervousness on Wall Street regarding the high valuations resulting from recent artificial intelligence euphoria.

Digital assets pulled back as Bitcoin dropped to around the $63,000 threshold and Ethereum saw minor losses. The retreat was driven by cooling consumer economic data as well as the Securities and Exchange Commission's decision to postpone a key regulatory meeting and delay plans for tokenized asset trading. The regulatory friction also dragged down crypto-linked equities like Coinbase and Robinhood.