Finance

Equity futures drifted lower as investors prepared for a week dominated by major bank earnings and June Consumer Price Index results. While tech momentum remains a core theme, markets are displaying caution due to geopolitical risks and a potential hawkish shift in Federal Reserve policy projections under the new leadership of Chair Kevin Warsh.

The tech-heavy Nasdaq recently outperformed broader indexes, driven by a resurgence in semiconductor and AI-focused stocks. South Korean chipmaker SK Hynix made a notable U.S. market debut with a double-digit percentage gain, underscoring continued investor appetite for AI infrastructure even as other sectors face rotation pressures.

The Federal Reserve held interest rates steady at 3.50% to 3.75% in its most recent session but signaled that rates could end 2026 higher than previously anticipated. With headline inflation tracking at 4.2%, policymakers remain focused on anchoring long-term expectations, making upcoming congressional testimony by the Chair a pivotal event for fixed-income markets.