Wall Street’s financial sector thrived on the back of a booming artificial intelligence investment cycle and the high-profile SpaceX initial public offering. JPMorgan chief Jamie Dimon framed the performance as near-peak, though he tempered expectations regarding the sustainability of such rapid growth. Despite the optimism surrounding lenders, the Dow faced significant headwinds as IBM shares plunged 24%, a decline that threatens to set a historic single-session record for the company.

Investors found relief in cooler inflation data, with the June figure arriving at 3.5%. This cooling trend prompted a swift reassessment of Federal Reserve policy; market expectations for an interest-rate hike this month dropped to 16%, down from 42% just one day prior. As Fed Chair Kevin Warsh testifies before Congress, Treasury yields have begun to retreat. Meanwhile, energy markets remain volatile as President Trump signaled a shift in policy, walking back a proposed 20% tariff on cargo moving through the Strait of Hormuz, even as geopolitical tensions continue to keep oil prices elevated.