Soft Jobs Data Lift US Stocks and Rate-Cut Bets While the Dollar Slides

Financial markets rallied after the softer US June employment report reinforced expectations that the Federal Reserve could ease policy later in the year rather than raise rates. Major US stock indexes rose, short-dated Treasuries advanced as yields fell, and gold gained as traders priced in a higher probability of rate cuts. The dollar sold off against major currencies following the release. Falling oil prices added to the disinflationary tone, with crude drifting lower amid an improving supply picture. The main exception was technology: a global selloff in artificial-intelligence-linked semiconductor stocks spread through the sector after a powerful second-quarter rally, with chip-related names falling sharply as investors locked in profits and questioned the sustainability of AI-driven spending. US markets were closed on Friday, July 3, in observance of the Independence Day holiday, following an early close on Thursday. Investors now turn to upcoming inflation readings and the minutes of the Fed's June meeting for further clues on the policy path, with the broader market's resilience being tested by the rotation away from technology leadership.