Finance

The Philadelphia Semiconductor Index faced its worst performance of 2026 this June, shedding over $1.3 trillion in market value as investor sentiment cooled regarding the artificial intelligence boom. Concerns were exacerbated by a report that OpenAI might delay its initial public offering until 2027 and a notable revenue miss from Broadcom on its AI-specific targets. Although memory chipmakers like Micron initially surged on strong earnings, they eventually fell back as part of a broader sectoral retreat.

In the first meeting led by new Chair Kevin Warsh, the Federal Reserve unanimously voted to keep the federal funds rate in the 3.50% to 3.75% range this June. The central bank's updated policy statement removed prior language indicating a bias toward future cuts, signaling a more hawkish tilt as officials monitor sticky inflation and geopolitical tensions. Market expectations for a rate cut in 2026 have significantly faded, with some policymakers now projecting a potential hike by the end of the year.

Crude oil prices plummeted nearly 4% toward $69 per barrel on Friday as shipping through the Strait of Hormuz accelerated following progress on a US-Iran peace deal. Similarly, gold futures ended the week 3.44% lower, settling around $4,078 per ounce, marking one of its largest weekly declines of the year. The drop in these commodities reflects a reduction in the 'war premium' that had previously supported elevated prices.