Finance

The Federal Reserve recently maintained interest rates but released an updated dot plot suggesting higher borrowing costs for longer than previously anticipated. Half of the FOMC members now project at least one interest rate hike before the end of 2026, a notable pivot from earlier expectations of cuts. Financial markets have reacted by pricing in a high probability of a rate increase as early as September or October.

Technology stocks outperformed the broader market this week, driven by a surge in semiconductor companies following the announcement of a US chip-making partnership between Intel and Apple. Intel shares jumped over 10% on the news, while firms like Nvidia and Micron also reached record levels due to sustained demand for AI-related memory hardware. The sector's massive growth has led to a significant reshuffling in major index rankings, with Nvidia ascending to the top spot.

Digital assets including Bitcoin and Ethereum saw declines today as traders reacted to the Federal Reserve's hawkish stance and a strengthening US dollar. Bitcoin fell approximately 3% to trade near $63,900, while Ethereum dropped over 3% to roughly $1,700, reflecting a broader risk-off sentiment in the crypto market. High-yield treasury notes have further pressured non-interest-bearing assets, leading to a bearish trend across major altcoins.