Finance

Technology stocks led market declines, with the Nasdaq Composite dropping over 1% due to significant weakness in the semiconductor industry. Major players such as Nvidia, AMD, and Intel saw their shares slide following a historic double-digit collapse in South Korean markets led by SK Hynix, raising concerns about the sustainability of high-growth AI infrastructure spending.

Federal Reserve Governor Christopher Waller indicated that the central bank might need to raise interest rates soon if upcoming inflation data exceeds expectations. These remarks, combined with a rising 10-year Treasury yield of 4.6%, weighed on market sentiment ahead of the June Consumer Price Index report scheduled for release later in the week.

While tech and growth sectors struggled, energy stocks and consumer defensive names offered a pocket of resilience in the broader market. Rising oil prices boosted energy-linked components of the Dow Jones Industrial Average, while the consumer staples sector saw gains of nearly 1% as investors sought stability amidst geopolitical uncertainty.