Finance

New labor data revealed that the U.S. economy added only 57,000 jobs in June, significantly below the anticipated 113,000. This cooling of the labor market has led investors to reduce the probability of an immediate interest rate hike by the Federal Reserve, with some analysts now projecting that any further adjustments may be delayed until December 2026.

The semiconductor industry experienced significant pressure as major players like Nvidia and Meta saw declines, contributing to a 5.4% drop in the Philadelphia Semiconductor Index. Analysts are warning of a potential "valuation snapback" after extreme speculation drove artificial intelligence hardware stocks to massive year-to-date gains that have recently begun to disconnect from infrastructure spending reality.

The yield on the 10-year U.S. Treasury note held near 4.49% after testing highs of 4.5% earlier in the week. Federal Reserve Chair Kevin Warsh indicated that inflation risks are softening and that there is no immediate urgency to raise rates, though markets continue to price in a more than 60% chance of a hike by September 2026.