Finance

Dallas Fed President Lorie Logan suggested that additional interest rate hikes may be necessary later this year to combat inflation that remains well above the 2% target. Market participants have adjusted their expectations, with futures now reflecting a 55% probability of a rate increase by December as energy costs continue to climb.

The 10-year Treasury yield approached 4.5% following a stronger-than-expected ADP private payrolls report showing 122,000 jobs added in May. Rising crude prices, with West Texas Intermediate near $96 a barrel, have added further upward pressure on yields as markets price in sustained inflationary risks.

Major technology firms including Microsoft, Nvidia, and Salesforce faced significant selling pressure, weighing heavily on the broader market. Conversely, energy stocks have remained resilient, buoyed by global supply concerns and the potential for increased domestic production under current policy frameworks.