Finance

After a rocky June characterized by fears of overextended valuations, AI-related stocks began to stabilize at the start of July. Nvidia rose 2.6% to help lift the broader market, while other chipmakers like Micron and AMD contributed to a record-breaking quarter for the semiconductor industry, which added approximately $2 trillion in combined market capitalization.

The yield on the 10-year U.S. Treasury note climbed to 4.46% following stronger-than-expected job openings data, which reinforced expectations for sustained high interest rates. Markets are increasingly pricing in at least one Federal Reserve rate hike later this year, potentially as early as September, as the economy continues to show significant resilience.

Crude oil prices edged higher to start July as Iran declined direct negotiations with U.S. envoys, raising supply concerns and impacting the global inflation outlook. Simultaneously, the U.S. dollar surged against the Japanese yen, pushing the currency to a 40-year low of 162.77 as divergent monetary policies continue to erode the yen's standing.