Finance

U.S. employers added only 57,000 jobs in June, roughly half of the 115,000 positions anticipated by economists. While the headline unemployment rate edged down to 4.2%, analysts noted the decline was largely due to a shrinking labor force. This significant hiring slowdown has prompted traders to reduce bets on an imminent interest rate hike at the upcoming July FOMC meeting.

Despite a massive first-half rally for chipmakers like Micron and Nvidia, the sector experienced a notable pullback to start July. Investors are increasingly questioning whether the trillions of dollars in projected AI infrastructure spending will translate into sustainable revenue growth. This skepticism led to a nearly 5% weekly slide in the Nasdaq as profit-taking intensified across the semiconductor landscape.

Oil prices have retreated toward pre-war levels, with Brent crude trading near $71.80 a barrel following technical talks in Switzerland regarding the conflict with Iran. The energy sector saw broad declines in early July, with the NYSE Energy Sector Index dropping nearly 1% in a single session. This cooling of energy costs has provided some relief to inflationary pressures that have persisted throughout the year.