Finance

The Philadelphia Stock Exchange Semiconductor Index suffered a historic 21% plunge during July, highlighting intensifying investor concerns about the sustainability of heavy artificial intelligence spending. Extreme volatility shook the sector, with all 22 trading sessions recording intraday swings of at least 2% as market participants questioned long-term capital expenditure commitments from major technology companies.

Bond yields marched higher across maturities at the end of the week, with the 10-year U.S. Treasury note climbing to its highest level since January 2025. This sell-off in the bond market followed the Federal Reserve's decision to maintain its benchmark interest rate, which was met with notable dissension from three regional presidents who pushed for an immediate quarter-percentage-point increase to combat persistent inflation pressures.

Crude oil benchmarks fell sharply from their recent peaks after political statements injected hope for a diplomatic de-escalation between the United States and Iran. Speculation that new negotiations could secure the vital Strait of Hormuz shipping corridor alleviated immediate regional supply risks, drawing Brent crude futures and global energy derivatives noticeably lower.