Finance

While broader indexes remained stable, the tech-heavy Nasdaq Composite faced pressure as major artificial intelligence chipmakers experienced a significant sell-off. Shares of industry leaders like Micron, AMD, and Intel tumbled as investors engaged in profit-taking, questioning whether current valuations for overstretched semiconductor stocks are sustainable.

Crude oil prices have dropped toward four-month lows, with Brent trading near $72 per barrel following the reopening of the Strait of Hormuz and increased production targets from OPEC+. This shift from a perceived shortage to a potential near-term glut is providing a tailwind for the broader economy by lowering transportation costs and easing overall inflationary pressures.

The yield on the 10-year U.S. Treasury note eased to approximately 4.47% as the market reacted to the weakest monthly job gains since early 2024. Although the unemployment rate fell slightly to 4.2%, the overall slowdown in hiring has reduced the perceived urgency for the Federal Reserve to maintain its aggressive monetary tightening stance.