Evening Market Recap - Thursday, 25-Jun

Markets were mixed this week with AI remaining the dominant theme as the Iran war continued to take a backseat. Early-week softness in semis and memory was driven largely by positioning and market concentration concerns, while actual fundamentals remained solid. Those concerns were largely offset by MU's blowout earnings and guidance, which reinforced confidence in the AI capex cycle and sustained memory demand.

Major averages were overall little changed, but there was a lot of movement beneath the surface. The momentum trade bounce driven by renewed support for the AI capex trade following blowout results from Micron. Pockets of the broadening out/reopening/cyclical trade worked as well, with small caps, industrials, builders, travel & leisure and banks the standouts.

US equities were mixed in Wednesday trading as stocks struggled for direction after the Tuesday selloff. Today's big rate rally and ongoing oil selloff did not do much to support stocks as a hawkish Fed remains an overhang, while inflation concerns beyond oil remain elevated. May new home sales rose 580K m/m, missing consensus of 640K and the weakest since Jan-26.

US equities were lower in Tuesday trading, a bit off worst levels. Momentum memory semis under outsized pressure. Big Tech mostly lower.

US equities were mixed in Monday trading with stocks hovering near worst levels. Big tech underperformance was the big story in Monday trading with Google and SpaceX the notable decliners. Nothing on the economic calendar this morning in macro news, and nothing monetary policy related from Fed's Waller.

US equities were higher this week with the Dow and Russell 2000 hitting fresh record highs, while the S&P 500 ended up for its 11th week out of the past 12, and within ~1.5% of its 2-Jun record close. The Nasdaq was the best index performer this week on big upside from semis and memory.

US equities were lower in Wednesday trading following a hawkish FOMC. The market is now pricing in a 25bp rate hike by September. It was quiet outside of the Fed, with the market continuing to view the US-Iran deal as done.

US equities were mostly lower in Tuesday trading. Market took a bit of a breather after a three-day run higher that saw SOX run up by nearly 16%. ADP weekly private-payrolls report showed average growth of 25.5K over past four weeks

Major US equity indices were higher this week following last week's lower performance. The Market was encouraged by reports that the US and Iran are nearing a memorandum of understanding that could include a 60-day ceasefire extension, Hormuz reopening, Iranian commitments not to pursue nuclear weapons, and a framework for broader nuclear talks. Lots of investor attention was also on SpaceX's massive $75B IPO.

Stocks were up, oil was down, yields were down, and the VIX was down after Trump said tonight's bombing of Iran was cancelled and that Tehran had approved a draft agreement that would extend ceasefire. Big tech was mostly better though MSFT was a drag.