Equity markets pulled back for the second day on Wednesday while a resolution to the debt ceiling debate remains elusive. The move was amplified by weakness in the semiconductor sector, correcting after the previous week's surge. The takeaway for tech is that much of the gains expected from AI have been priced in, and investors should look to the next wave of winners. Among those will be tech services companies and hardware manufacturers to support the new technology.

The labor data added to Wednesday's woes. The JOLTs report showed a surprise surge in job openings that suggests momentum in the economy. That increases the odds of another Fed interest rate hike, and the odds are already high for another 25 bps. Economic pressure will continue to build and more financial institutions will fail.