Finance

Technology stocks led the broader market decline, with the S&P 500 tech sector officially entering correction territory after falling 11% from its June 2 record high. Chipmakers like Qualcomm, AMD, and Nvidia faced heavy pressure, while Super Micro Computer plummeted 28% following the announcement of a massive $7 billion equity financing package.

The May Consumer Price Index reported an annualized increase of 4.2%, marking the fastest pace of inflation since 2023. This hot reading, driven largely by a nearly 4% monthly jump in energy prices, has significantly dampened investor expectations for interest rate cuts from the Federal Reserve later this year.

The yield on the U.S. 10-year Treasury note remained steady around 4.55% as investors balanced hot inflation data against easing concerns over immediate military escalations. While the bond market appeared relatively calm, speculators increased net short positions across various maturities in anticipation of potentially tighter monetary policy.