USD weakens as tech rotation hits markets, rate cut hopes fade

The US Dollar Index declined 0.2% as markets rotated out of mega-cap tech stocks following stronger-than-expected JOLTS job openings data, which dampened July rate cut expectations. The JOLTS report showed job openings unexpectedly rose, reinforcing the Federal Reserve's cautious stance on monetary easing. This development triggered a notable shift in equity flows, with the Dow Jones outperforming while the tech-heavy Nasdaq lagged significantly. The rotation particularly impacted recent gainers in the technology sector, creating risk-off sentiment that initially supported safe-haven currencies like JPY and CHF. USD/JPY retreated from 145.50 toward 145.00, while EUR/USD found support near 1.0800. The market's recalibration of rate cut expectations suggests continued dollar volatility ahead, with traders now focusing on upcoming employment data to gauge the Fed's next moves.