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Wall Street Futures Slide Amid AI Bubble Concerns

  US stock futures retreated on Tuesday as mounting fears of an AI-driven market bubble weighed heavily on investor sentiment. The Dow Jones Industrial Average futures fell 0.7% , marking the worst three-day run for the blue-chip index since April. The Nasdaq 100 slipped 0.8% , while the S&P 500 dropped 0.6% , extending losses from a bruising session earlier this week. The pullback comes ahead of a pivotal Nvidia earnings report , which investors see as a litmus test for the sustainability of the AI boom. Concerns about inflated valuations in the sector have grown, particularly as chipmakers and tech giants face scrutiny over their aggressive expansion into AI infrastructure. Adding to the turbulence, Bitcoin briefly dipped below $90,000 , erasing all of its gains for the year and deepening a global sell-off in cryptocurrencies. The decline rattled Asian markets, with Japanese stocks suffering their steepest loss since April. Meanwhile, 10-year Treasury yields fell , reflec...
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Canada’s Unemployment Rate Rises, Fueling Speculation of July Rate Cut

 

Canada’s unemployment rate has climbed for the third time in four months, reaching 6.2%. While the country added 26,700 jobs in May, the rising jobless rate has prompted economists to consider the possibility of a rate cut by the Bank of Canada. Here are the key points:

  1. Job Market Trends:

    • Canada’s labor market saw modest growth, but the unemployment rate edged up by 0.1 percentage point.
    • The unemployment rate has risen by 1.1 percentage points since April last year.
    • The involuntary part-time rate increased, signaling potential weakness in the economy.

  2. Bank of Canada’s Stance:

    • Governor Tiff Macklem hinted at further rate cuts if inflation progress continues.
    • The central bank is “not close” to the limit of divergence from the Federal Reserve.
    • Markets have priced in about a 58% chance of another rate cut next month.

  3. Economic Outlook:

    • While there’s evidence supporting lower interest rates, the economy hasn’t plummeted.
    • Expect a gradual pace of interest rate reductions this year, with cuts likely at alternate meetings.

In summary, Canada’s rising unemployment rate has put pressure on the Bank of Canada to consider a rate cut in July. Economists are closely monitoring the situation, and the decision will have implications for the Canadian dollar and bond yields. Stay tuned for further updates as the economic landscape evolves.


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