Finance

The Nasdaq Composite experienced significant downward pressure, sliding over 1% due to a broad retreat in the semiconductor sector. Investors reacted poorly to conservative earnings outlooks from industry giants like Samsung, which triggered a wider exit from artificial intelligence and memory chip stocks.

The yield on the 10-year Treasury note climbed to approximately 4.55%, its highest level in a month, as rising oil prices reignited fears of persistent inflation. This shift has increased market expectations for potential interest rate hikes later this year, with investors closely monitoring for hawkish signals in upcoming central bank communications.

Market participants are awaiting the release of the June meeting minutes for insight into the policy direction of the new Federal Reserve Chair, Kevin Warsh. While rates were recently held steady, updated economic projections indicate that a majority of officials now anticipate at least one more rate increase before the end of 2026.