Finance

The U.S. economy added 57,000 jobs in June, significantly trailing the 115,000 positions projected by economists. This weaker-than-expected labor data led market participants to lower the probability of an imminent interest rate hike, with Fed funds futures now implying a decreased chance of a move in the coming months. The unemployment rate also ticked lower to 4.2%, suggesting a steady but cooling labor market.

The Nasdaq Composite fell 0.8% in the latest session, pressured by a sharp decline in semiconductor names like Micron and Nvidia. The PHLX Semiconductor Index dropped 5.4% as investors questioned whether artificial intelligence valuations have become overextended after a massive first-half rally. This sector-wide pullback was further exacerbated by reports of shifting supply chain dynamics, including potential chip sourcing changes for major tech hardware.

Digital assets saw a positive start to July, with Bitcoin reclaiming the $61,000 level after a volatile June. Sentiment was bolstered by comments from Federal Reserve officials regarding easing inflation risks and a shift toward net accumulation by long-term holders. Ethereum and Solana also posted notable gains, rising 5% and 4.6% respectively, as the broader crypto market cap returned to approximately $2.1 trillion.