Finance

June's nonfarm payrolls increased by only 57,000, falling significantly short of economist expectations and signaling a sharp slowdown in U.S. job growth. This softer-than-expected data led market participants to reduce their bets on immediate interest rate hikes, providing a supportive backdrop for equities despite broader economic uncertainty.

While broader indexes showed resilience, the technology sector faced a sharp correction led by chipmakers, with the Philadelphia Semiconductor Index dropping over 6%. Major players such as Micron and Nvidia saw pullbacks as investors reassessed the immediate costs of AI infrastructure and locked in profits following a strong first half of the year.

The yield on the 10-year U.S. Treasury note hovered around 4.49% as investors digested comments from Federal Reserve Chairman Kevin Warsh regarding easing inflation risks. Although a September rate hike remains a possibility, recent data showing a return of wholesale energy prices to pre-conflict levels has helped alleviate some near-term upward pressure on yields.