Yen extends its slide
The Japanese yen weakened again Wednesday, falling to a fresh 40-year low against the U.S. dollar.
LSEG data showed the currency at 162.28 per dollar, extending losses from the previous session as traders watched closely for any signs of intervention by Japanese authorities.
Dow futures slip after strong first half
U.S. stock futures softened Tuesday night after Wall Street closed out a powerful first half of 2026.
Futures tied to the Dow Jones Industrial Average fell 83 points, or 0.2%. S&P 500 futures and Nasdaq 100 futures traded near the flatline.
Major indexes finish June higher
During Tuesday’s regular session, all three major U.S. averages advanced.
The Dow rose 136.46 points, or 0.26%. The S&P 500 gained 0.79%, while the Nasdaq Composite climbed 1.52%.
Best first half for Dow since 2021
For the first six months of 2026, the Dow gained 8.9%, its strongest first-half performance since 2021.
The S&P 500 rose 9.6% over the same period, while the Nasdaq advanced 12.8%.
The Russell 2000 surged nearly 22%, marking its best first-half performance since 1991.
Chip stocks lead the rally
The market’s strength has been driven largely by semiconductor and artificial intelligence-related shares.
Tuesday’s gains were supported in part by another rise in chip stocks.
During the second quarter of 2026, a record chip rally added $2 trillion in combined market capitalization to Micron, Intel and Advanced Micro Devices.
Asia-Pacific markets open mixed
Trading in Asia-Pacific markets was mixed Wednesday.
Japan’s Nikkei 225 rose 1.79%, while the broader Topix gained 1.07%.
South Korea’s Kospi advanced 1.52%, but the smaller-cap Kosdaq fell 0.42%. Australia’s S&P/ASX 200 was little changed, trading 0.05% lower.
Semiconductor rally draws caution
Paul Hickey, co-founder of Bespoke Investment Group, said he remains constructive on semiconductors over the long term, but warned that the group may be overheated in the near term.
“Over the long term, we still like the semis, but I wouldn’t be aggressive towards it here. This bull market is an AI-driven bull market, that’s the theme. If this bull market is going to continue, it’s going to be led by tech and probably semis, but they don’t have to beat consistently, and you can’t go in that kind of pattern for good,” he said on CNBC’s “Closing Bell: Overtime” Tuesday afternoon. “So I think in that respect they’ve gotten a little bit…extended. So I would maybe take a breather here.”
Fed chair speech in focus
Federal Reserve Chairman Kevin Warsh is scheduled to speak Wednesday at the European Central Bank Forum on Central Banking in Sintra, Portugal.
Since taking over the Fed, Warsh has moved to reshape the central bank through new task forces that will review its current strategies and help define modern monetary policy.
Traders are also assessing whether the Fed may raise interest rates as it continues trying to contain inflation.
Economic data ahead
Investors will also watch several U.S. economic releases Wednesday.
The calendar includes the June ADP employment survey, the June ISM manufacturing reading and final global PMI manufacturing data
