Finance

The Nasdaq and S&P 500 faced downward pressure as semiconductor stocks experienced a sharp two-day decline, with the PHLX Semiconductor Index sinking over 6% in a single session. Market participants are increasingly scrutinizing the high costs associated with artificial intelligence compute and reevaluating the short-term growth potential of the AI trade.

U.S. Treasury yields moved lower across the curve after the Bureau of Labor Statistics reported a cooling labor market, with the 2-year note dropping to approximately 4.13%. This reversal comes after yields briefly spiked earlier in the week following hawkish rhetoric from newly appointed Federal Reserve Chair Kevin Warsh.

After a volatile June that saw Bitcoin reach a four-year low, the digital asset reclaimed the $61,000 level in early July. Prices for major cryptocurrencies like Bitcoin and Ethereum rose by more than 2% and 5% respectively on Friday as macro liquidity concerns eased following the disappointing U.S. payroll data.