Finance

Heavyweight chipmakers like Nvidia and Micron Technology have experienced notable pullbacks recently, with some semiconductor ETFs dropping as much as 4.5% in a single session. This downward pressure reflects a broader rotation away from high-momentum AI stocks as investors re-evaluate valuations and the rising infrastructure costs associated with artificial intelligence.

While the national unemployment rate fell to 4.2% in June, nonfarm payroll growth of 57,000 jobs came in significantly below market forecasts. This weaker-than-expected job creation, combined with downward revisions to previous months, has led some market participants to scale back bets on an imminent interest rate hike from the Federal Reserve.

The central bank is undergoing a strategic shift under newly sworn-in Chair Kevin Warsh, who has expressed a preference for reducing forward guidance in favor of data-dependent decision-making. Investors are closely monitoring upcoming FOMC minutes for further clarity on this new policy direction, especially as core inflation remains above the bank's target.