Finance

Semiconductor stocks significantly weighed on the market as investors began to question the long-term sustainability of the artificial intelligence boom. Memory chipmakers like Sandisk and Micron Technology saw substantial volatility, with Sandisk shares plunging over 10% on Friday. These declines were exacerbated by Apple's decision to raise prices on hardware to offset rising component costs, further dampening sentiment across the broader tech sector.

In the first meeting led by Chairman Kevin Warsh, the Federal Reserve unanimously voted to keep benchmark interest rates between 3.5% and 3.75%. Although rates remained steady, the central bank removed previous language indicating a bias toward future cuts, signaling a shift toward price stability. Most economists now anticipate the Fed will hold rates at current levels for the remainder of 2026 due to persistent inflationary pressures.

US crude oil prices settled near $70 per barrel as geopolitical tensions eased following progress in peace talks related to the conflict in Iran. While the energy sector remains volatile, some analysts suggest that lower oil prices could provide necessary relief to consumers, though core inflation remains stubborn. Despite the price retreat, many energy companies are focusing on discipline, prioritizing shareholder returns and debt reduction over aggressive production growth.