Finance

A significant capital rotation occurred during the first week of July as investors exited the previously dominant AI and semiconductor sectors. While companies like Micron and AMD suffered heavy losses, defensive and value-oriented names including Apple, McDonald's, and major healthcare providers saw substantial gains, helping the Dow outperform other major indices.

June payroll data showed a smaller-than-expected increase of 57,000 jobs, which market analysts interpreted as a sign of cooling economic momentum. This softer report led to a decrease in the probability of an immediate interest rate hike by the Federal Reserve, providing support for cyclical sectors and calming Treasury yields near the 4.45% level.

Digital assets entered July 2026 showing signs of recovery after a volatile first half of the year, with Bitcoin attempting to sustain its position above the $60,000 mark. Despite ongoing concerns regarding ETF outflows and regulatory pressures, easing inflation signals and a more cautious Fed outlook have temporarily improved risk appetite for major tokens like Ethereum and Solana.