Finance

Tech-heavy indexes saw a resurgence as semiconductor stocks like Micron and Intel rebounded from a period of heavy selling. While concerns persist regarding overvaluation in the AI space, the sector led gains on Thursday after investors engaged in opportunistic buying following recent triple-digit point drops in the Nasdaq.

Financial markets are increasingly pricing in a potential interest rate hike by December 2026 as inflation remains entrenched above the 2% target. With Kevin Warsh expected to chair his first FOMC meeting next week, economists have largely abandoned expectations for rate cuts this year due to persistent labor market strength and energy price pressures.

The yield on the 10-year Treasury note remained stable near 4.52% following May consumer inflation data that largely aligned with analyst expectations. Although annual inflation accelerated to 4.2%, a lower-than-forecast monthly rise in core CPI provided some relief to bond markets, preventing a further spike in long-term borrowing costs.