Finance

Markets are bracing for Kevin Warsh's first FOMC meeting on June 16-17, with expectations shifting away from rate cuts due to persistent inflation and strong labor data. Recent reports indicate a 99% probability that the Fed will maintain the current federal funds rate of 3.50%-3.75%, effectively removing any previous easing bias for the remainder of 2026.

Despite recent gains, the technology sector has faced a volatile period, including a massive $1.3 trillion market cap loss earlier in June led by a plunge in semiconductor stocks. Analysts characterize this as a necessary valuation reset for AI-driven companies as investors weigh high corporate earnings growth against a higher-for-longer interest rate environment.

The energy sector has become a top performer in 2026, driven by rising crude oil prices and increased demand for U.S. exports following disruptions in the Strait of Hormuz. Domestic production of natural gas liquids is also forecasted to grow, providing strong cash flows for major integrated oil and midstream companies.