Investors are now betting that the Federal Reserve will cut interest rates just once more this year, a drastic shift in expectations since late 2024.

Stiffer competition for the tech giants at the forefront of the artificial intelligence boom prompted investors to reassess the companies’ sky-high valuations.

Stronger-than-expected data on the labor market has added to clues that the economy continues to run at a solid pace, amplifying fears about stubborn inflation.