Global equities hit a tech-led risk-off patch
World markets turned softer as technology and semiconductor stocks sold off. On June 23, the Nasdaq fell 351 points, or roughly 1.3%, to 26,166.6, while the S&P 500 slipped 27.8 points to 7,472.8. Reuters also reported a broader tech pullback with chip stocks down nearly 8% at one stage, showing that AI and semiconductor names remain the biggest swing factor for global risk sentiment this week.
The U.S. dollar strengthened sharply as Fed hike odds jumped
The dollar remained one of the week’s biggest macro stories. Markets repriced Fed expectations after last week’s policy messaging, with the probability of a July Fed rate hike rising to 34.2% from 8.5% in one week, while September hike odds climbed to 69.5% from 29.1%. That repricing pushed the dollar to a 13 month high, tightening financial conditions globally and putting pressure on non U.S. assets, commodities, and emerging market currencies.
Oil cooled after Middle East supply fears eased
Crude prices retreated as Iran related tensions eased and shipping risk premiums softened. Brent crude was around $77.90 a barrel on June 23, down $2.67 on the day, while WTI traded near $73.86, down $3.68. The drop matters because oil had been a major inflation risk earlier in the quarter. This week’s decline gave markets some relief on energy inflation, even as central bank tightening fears replaced geopolitics as the dominant driver.
