Finance

Large-cap technology companies led the market sell-off, particularly in the semiconductor sector where firms tied to AI saw double-digit percentage losses. Investor concerns intensified following cautious guidance from Broadcom, sparking fears that the high demand for AI technology might be growing more slowly than initially projected.

The 10-year Treasury yield jumped above 4.5% as the resilient labor market data fueled expectations that the Federal Reserve will maintain high interest rates through 2026. Simultaneously, the 2-year yield hit its highest point in a year, with traders now pricing in a 70% chance of a rate hike before the end of the year.

The cryptocurrency market entered June under notable pressure, characterized by some of the largest weekly outflows of the year for Bitcoin and Ethereum. This downturn was exacerbated by institutional whales distributing holdings and broader market caution as traditional asset yields remained elevated.