Finance

During an international panel discussion, Fed Chair Kevin Warsh noted that inflationary risks have moderated in recent weeks, though he avoided providing specific guidance for the July interest rate decision. Markets have adjusted their expectations for 2026, with some officials now suggesting at least one rate hike may be necessary this year due to persistent price pressures. Treasury yields retreated from their daily highs following these comments as investors recalibrated their outlook for monetary policy.

U.S. crude oil prices fell approximately 1.3% to $68.58 per barrel, marking their lowest levels since March 2026. This decline followed reports of progress in technical talks between the U.S. and Iran in Qatar, which eased concerns regarding global supply disruptions. Although the EIA reported a 10th consecutive weekly drop in domestic crude inventories, the potential for a lasting ceasefire in regional conflicts continued to exert downward pressure on energy benchmarks.

While chipmakers like Micron and AMD recorded massive gains earlier in the year, the technology sector is currently experiencing what analysts describe as AI fatigue. Investors are increasingly questioning whether the hundreds of billions of dollars in infrastructure spending by major tech firms will translate into sustainable profits. Consequently, software and semiconductor stocks that led previous rallies saw notable pullbacks, even as specific names like SanDisk and Western Digital reached new milestones.