Finance

Software and memory chip manufacturers heavily pressured the markets following several lukewarm financial outlooks. Despite reporting strong current growth, hardware firms like Western Digital and Sandisk saw substantial declines as their forward guidance failed to impress optimistic investors. Software players such as Salesforce and AppLovin similarly dropped following corporate updates.

Oil prices recorded sharp gains as international markets closely monitored fluid political situation in the Middle East. Brent crude climbed nearly 4% as negotiations continued regarding international shipping access through the strategic Strait of Hormuz. The jump in oil costs contributed to rising Treasury yields, putting added pressure on equity growth.

New macroeconomic data revealed that second-quarter labor productivity accelerated by 1.4%, handily beating expectations. Concurrently, initial unemployment claims edged up minimally to 199,000, signaling a remarkably stable labor market. The combination of strong worker output and limited layoffs gave the Federal Reserve room to focus on peripheral macroeconomic risks.