Finance

The technology sector experienced a sharp downturn, with the Philadelphia Semiconductor Index plunging over 10% in a broad sell-off. Market leaders including Nvidia, Intel, and AMD saw significant losses as investor enthusiasm for artificial intelligence appeared to cool following disappointing sector performances and revised earnings outlooks.

U.S. Treasury yields rose significantly following the latest employment data, with the 10-year yield reaching 4.55% and the 2-year note hitting its highest level since early 2025. Investors are increasingly pricing in the likelihood of a Fed rate hike before the end of 2026, a sharp reversal from earlier expectations of multiple cuts.

Despite recent price volatility, first-quarter earnings for 2026 showed substantial year-over-year growth of approximately 28% to 30%. While technology remained a primary driver, other sectors such as materials and communication services also posted double-digit gains, reflecting a broader resilience in the corporate sector.