Finance

The technology sector faced intense pressure recently as investor sentiment toward artificial intelligence companies began to wane. Semiconductor leaders including Micron, Intel, and AMD saw declines of 10% or more following a series of disappointing outlooks for AI-related demand. This rotation away from high-growth tech has benefited defensive sectors, with consumer staples like Procter & Gamble and Walmart outperforming the broader market.

U.S. Treasury yields rose sharply as financial markets adjusted to a higher-for-longer interest rate environment driven by rising energy costs and economic uncertainty. The 2-year yield reached 4.17%, its highest level in over a year, while the 10-year yield settled near 4.55%. Persistent inflation pressures, currently around 3.8%, are being exacerbated by high commodity prices linked to the ongoing conflict in the Middle East.

The digital asset market has entered a bearish phase, with Bitcoin dropping below the $60,000 threshold and erasing significant post-election gains. Broader crypto sentiment remains cautious, as evidenced by a large majority of tokens declining in value during recent trading sessions. Despite the volatility, institutional interest continues to evolve with the launch of new tokenized products that offer retail investors access to major private equity offerings.