Finance

The U.S. economy added just 57,000 jobs in June, coming in significantly lower than previous months and signaling a cooling labor market. This slowdown has led investors to lower their expectations for an interest rate hike at the Federal Reserve's upcoming July meeting. Although the unemployment rate ticked down slightly to 4.2%, persistent inflation continues to outpace wage growth, which rose by only 3.5% annually.

Major technology benchmarks faced downward pressure this week as investors began rotating capital away from artificial intelligence and semiconductor stocks. Shares of industry leaders like Nvidia, Micron, and Sandisk experienced notable declines as the market questioned whether recent capital expenditures in AI were overextended. Despite this tech-specific retreat, traditional sectors such as financials and communication services saw gains, contributing to a broadening of market leadership.

U.S. Treasury yields retreated from recent highs after weaker-than-expected hiring data suggested a less aggressive path for future interest rate increases. The 10-year Treasury yield finished near 4.49%, while the 2-year note eased to approximately 4.14%. Market participants are also monitoring geopolitical developments, as cooling oil prices and potential diplomatic progress in the Middle East have helped alleviate some of the inflation concerns that previously pushed yields higher.