Finance

U.S. payrolls increased by only 57,000 in June, significantly trailing the forecasted 115,000. This cooling labor market data has led investors to reduce their expectations for a July interest rate hike from the Federal Reserve, as the unemployment rate also ticked down slightly to 4.2%.

Despite broader market gains, the technology-heavy Nasdaq fell 0.8% as the semiconductor industry experienced a heavy selloff. Major industry players like Teradyne and KLA saw double-digit percentage losses, while companies such as Nvidia and Micron also retreated amid concerns over high valuations and the escalating costs of AI computing.

Bond markets saw mixed movements with the 10-year Treasury yield finishing near 4.45% while the 2-year yield slipped to approximately 4.13%. The narrowing spread between these maturities indicates that investors are pricing in a more cautious growth outlook and tighter Fed policy to manage long-term inflation.