Finance

The AI semiconductor sector experienced intense volatility in late June, erasing approximately $1.4 trillion in market value as investors questioned the high costs of building data centers relative to revenue potential. High-profile chipmakers like Nvidia and Broadcom saw steep declines, with Nvidia alone losing hundreds of billions in market capitalization despite maintaining strong underlying fundamentals and high institutional confidence.

Crude oil prices fell toward $69 a barrel, hitting 17-week lows as progress toward a U.S.-Iran peace deal restored shipping flows through the Strait of Hormuz. This rapid drop in energy costs has provided immediate relief for consumers at the pump and helped ease broader market concerns regarding persistent inflation.

U.S. Treasury yields fell for the third consecutive week, with the 10-year yield dropping below 4.40% as lower energy prices limited the likelihood of multiple interest rate hikes this year. Despite this easing, Federal Reserve officials have signaled a hawkish turn, with updated projections now suggesting at least one rate increase may be necessary before the end of 2026 due to sticky core inflation.