Finance

The June employment report revealed a significantly softer-than-expected gain of only 57,000 jobs, far below the consensus forecast of 115,000. This signs of a cooling labor market led investors to sharply reduce the probability of a Federal Reserve interest rate hike in late July 2026, dropping from nearly 29% to approximately 17%.

The Nasdaq Composite fell 0.8% on the final trading day before the holiday as a sharp selloff in semiconductor and AI-related stocks weighed on the index. Concerns over overextended valuations in the artificial intelligence trade led to significant losses for major players like Micron and AMD, while Meta also saw declines amid reports regarding its capital expenditures.

U.S. Treasury yields eased at the front end of the curve as market participants digested the weak June jobs data. The benchmark 10-year Treasury yield finished near 4.49%, while the 2-year note yield dropped to roughly 4.14% as the outlook for a restrictive monetary policy path became less certain for the remainder of the summer.