Finance

Major U.S. indexes showed divergent paths today, with the Dow Jones Industrial Average rising nearly 0.4% toward record highs while the Nasdaq Composite struggled against broader technology weakness. Micron Technology spearheaded a massive rally in the semiconductor space, surging over 13% following a blowout earnings report that highlighted sustained demand for AI-specific memory. This sector strength partially offset a decline in megacaps like Apple and Microsoft, which faced valuation pressures and a shift in investor focus.

The Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index, rose 4.1% year-over-year in May 2026, marking its first time above the 4% threshold in three years. Although energy costs have begun to retreat recently due to progress in international peace talks, the stubborn cost of services continues to pressure the central bank. Market participants currently price in an 80% chance of an interest rate hike by September as Fed Chair Kevin Warsh maintains a hawkish stance to tame these rising prices.

Digital assets experienced a significant downturn today, with Bitcoin falling below the $60,000 psychological floor to its lowest level since 2024. The broader cryptocurrency market saw total capitalization retreat to $2 trillion as investors rotated capital away from risk assets and into AI-driven equities. Continued outflows from spot Bitcoin ETFs and a strengthening U.S. dollar have further dampened sentiment, leading to nearly $1 billion in liquidations across the sector.