Finance

Bond markets reacted swiftly to the central bank's policy guidance, sending the 2-year Treasury yield up by 0.118 percentage point to reach 4.348%. Following the confirmation of a hawkish outlook, market-implied probabilities for an interest rate hike at the upcoming September meeting jumped significantly from 35% to nearly 60%. Long-term yields experienced much milder upward adjustments, reflecting shifting investor adjustments around monetary tightening cycles.

Shares of Marvell Technology plummeted over 10% despite posting quarterly revenues and profits that exceeded Wall Street consensus estimates. Although the company expanded its financial guidance and reported strong demand for artificial intelligence infrastructure, analysts noted that substantial optimism had already been baked into the stock price following its massive year-to-date rally. The pullback illustrates the increasingly elevated bars that tech companies face as investors scrutinize near-term monetization.

The cryptocurrency market witnessed heightened volatility as Bitcoin tested a multi-month high of over $81,000 overnight before retreating below the $80,000 baseline. While digital asset inflows have been broadly supported by long-dated bond buybacks, the asset class faced temporary selling pressure as a hawkish tone from the Federal Reserve cooled broader risk-on sentiment. Concurrently, a massive $6.4 billion options expiration event on Friday contributed to shifting market positioning and asset consolidation.