Finance

The 2-year Treasury yield climbed to 4.16%, its highest level in a year, as investors adjusted to a more hawkish economic outlook. Futures markets now reflect a 70% probability of an interest rate increase by December, fueled by concerns that sticky inflation and strong growth will prevent near-term rate cuts.

The technology-heavy Nasdaq Composite suffered a 4% decline, its worst weekly performance in over a year, as the recent artificial intelligence rally faced a significant hurdle. Leading chipmakers and AI-related firms saw market capitalizations drop by approximately $1 trillion in total after key industry targets remained unchanged.

Digital assets experienced significant weakness in early June, with Bitcoin dropping below the $60,000 threshold during the recent market volatility. Demand is currently being stifled by macroeconomic uncertainty and concerns over potential new trade tariffs, leading to a notable decline in investor confidence across the sector.