Finance

High-profile semiconductor and technology stocks have entered a volatile period, with the Nasdaq experiencing its sharpest weekly decline in over a year. While long-term AI demand remains strong, investors are currently rotating out of expensive chipmakers and questioning the high capital expenditure levels required to sustain the artificial intelligence boom.

The Federal Reserve held interest rates steady at 3.50%-3.75% in its latest meeting, but updated economic projections signal that borrowing costs may remain elevated well into 2027. Under new Chair Kevin Warsh, the central bank has revised inflation forecasts upward, leading a majority of officials to anticipate at least one more rate hike before the end of 2026.

Cryptocurrency markets have underperformed in June, with Bitcoin falling below the critical $60,000 technical support level for the first time since late 2024. This recent downturn is attributed to a combination of heavy outflows from spot ETFs, broader selling pressure in the tech sector, and investor caution regarding pending US digital asset regulations.