Finance

Newly confirmed Fed Chair Kevin Warsh oversaw a June policy decision that held interest rates steady at 3.50%-3.75%, signaling a 'higher-for-longer' stance to combat persistent inflation. Markets have significantly adjusted their expectations, now pricing in potential rate hikes later in 2026 rather than the previously anticipated cuts, as core inflation remains elevated at 3.4%.

Mega-cap technology names spearheaded the market's recovery, with Tesla gaining 5.8% and the broader 'Magnificent Seven' rising 2.6% after a recent AI-fueled selloff. Additionally, Comcast shares jumped following the announcement of a strategic plan to spin off its cable television networks and media businesses from its broadband operations.

The energy sector has emerged as a top performer in 2026, with the S&P Energy Select Sector index up nearly 25% year-to-date. Supply concerns stemming from the U.S.-Iran conflict and disruptions in the Strait of Hormuz have pushed U.S. crude oil exports to record levels, though recent provisional peace talks have introduced some price volatility.