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Chip and AI Selloff Continues, Pressuring Major Market Indices

AI-related semiconductor and infrastructure stocks remained under pressure this week, weighing on broader equity markets. Most major indices finished the week lower, with the notable exception of the small-cap Russell 2000. The Nasdaq-100 experienced the largest decline as investors continued to reduce exposure to technology and AI-related shares.

Looking ahead, second-quarter earnings season is expected to play a key role in determining market direction. Corporate results and management outlooks will provide important insight into the strength of the economy and whether the recent pullback in technology shares broadens or stabilizes.

The Bank of Canada concluded its policy meeting this week by leaving its benchmark interest rate unchanged at 2.25%, reflecting a cautious approach as policymakers continue to monitor inflation and economic growth.


Treasury Yields

• 30-year Treasury: 5.071% (higher)

• 10-year Treasury: 4.553% (lower)

Mortgage Rates

• Average 30-year fixed (Freddie Mac): 6.55% (higher)

Commodities & Currency

  • U.S. dollar index: 100.74 (lower)
  • Crude oil: $82.13 per barrel (much higher)
  • Natural gas: $3.385 (higher)
  • Gold: $4,020.20 per ounce (lower)
  • Silver $56.425 per ounce (lower)

The Treasury Department Monthly Statement, June


Federal Reserve

Industrial Production, June

  • +0.1% month, 1.1% year
    • Manufacturing unchanged month, +1.1% year
    • Mining +0.4% month, +2.4% year (Includes oil and gas production)
    • Utilities +0.4% month, +0.3% year

Commerce Department

Retail Sales, June +0.2%

Housing Starts

  • +19.0% June, +3.5% from June 2025
    • Single Family -0.2% month, -3.2% year
    • Multifamily +79.3% month, +19.3% year
  • Permits -3.0% June, -2.3% year  (Permits are a sign of future housing starts.)

Labor Department

Consumer Price Index, June

  • -0.4%, month, +3.5%, 12 months
    • Biggest increase, utilities
    • Biggest decrease, gasoline
    • Excluding volatile food and energy, unchanged, month +2.6% year

              Source: U.S. Department of Labor

Producer Price Index, June

  • -0.3% month, +5.5% year
    • Excluding volatile food and energy +0.1% month, +5.1% year,
    • Goods -1.4%
    • Services +0.2%

              Source: U.S. Department of Labor

Import/Export Price Indexes

  • Import Prices +0.3% month, +7.7% year
    • Fuel Imports +0.4% month, +44.1% year
    • Nonfuel Imports +0.4% month, +4.2% year
  • Export Prices -0.6% month, +10.2% year

Jobless Claims (prior week)

  • New Claims 208,000 (lower)
  • 4-week Moving Average 214,250 (lower)
  • Total Claims 1,805,000 (lower)

Energy & Industry Data

Energy Information Administration

  • Weekly Oil Production 13.861 million barrels (higher)
  • Natural Gas Storage +41 billion Ft3, above average for this time of year over the past 5 years.

Baker Hughes Rig Count

  • Oil rigs: +7 at 452
  • Gas rigs: unchanged at 126

Q2 Earnings FactSet Reported with 10% of S&P 500 companies reporting, Q2 earnings are up 24.7% from last year.


(All data was released the week of 07/13/2026)

(All monthly statistics are seasonally adjusted unless stated otherwise).

If you have questions about the markets or your financial plan, we’re always here to help.

Loren Rex – Emeritus

Erik A Smith, AIF® – President & C.E.O.

Nicholas Acri, CFP® – Partner & Wealth Advisor

Dylan Thomas, CFP® – Partner & Wealth Advisor

Jack Zeeb – Wealth Advisor

These are the opinions of Loren Rex and Erik Smith and are not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice. The Indices mentioned are unmanaged and cannot be invested into directly. The Dow Jones Industrial Average, Dow Jones, or simply the Dow, is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity indexes. The Nasdaq Composite is a stock market index that includes almost all stocks listed on the Nasdaq stock exchange (more than 2500 stocks).

Sources:

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCRFPUS2&f=W

https://ir.eia.gov/ngs/ngs.html

https://www.freddiemac.com/pmms

https://www.wsj.com/market-data?mod=nav_top_subsection

https://bakerhughesrigcount.gcs-web.com/na-rig-count

https://www.census.gov/economic-indicators

U.S. Import and Export Price Indexes summary – 2026 M05 Results

FactSet Earnings Insight