Finance

The tech-heavy Nasdaq fell over 1% as investors questioned whether massive investments in artificial intelligence will yield expected returns. Semiconductor companies have faced particular pressure, contributing to a broader retreat from the AI-driven rally that characterized earlier months.

Investors are closely analyzing minutes from the Federal Reserve's June meeting, which indicate a shift away from previously projected rate cuts. With inflation running at approximately 4.2%, policymakers are now divided between maintaining current levels and implementing at least one rate hike by the end of 2026.

Bitcoin and other major digital assets tumbled as geopolitical instability reduced investor appetite for riskier holdings. The largest cryptocurrency dropped below the $62,000 mark following news of renewed U.S.-Iran airstrikes and concerns over energy-linked inflation.