Evening Market Recap - Thursday, 2-Jul

US equities finished mixed in Thursday trading. However, equal-weight S&P outperformed the cap-weighted index by ~70 bp and RSP set a fresh ATH. Momentum unwind in focus again with memory/semis hit by recent scrutiny surrounding AI capex trade and input cost pushback.

US equities finished lower in Wednesday trading, off midday highs, though breadth was positive and the equal-weight S&P ended higher. There were several moving parts in play today, with another day of momentum unwinding as the big story. There were some positive takes on today's ISM manufacturing reading given a big drop in the prices-paid component and less pessimistic commentary.

US equities were higher in Tuesday trading, just off their best levels. The momentum trade again took the lead in a session without many notable drivers. There was some stalling of the broadening-out trade with S&P decliners leading advancers and the equal-weight S&P lagging the cap weighted index.

US equities finished mostly higher in Monday trading, ending near best levels. There were several big gainers in the big-tech space, though no specific catalyst in view. In macro news, Dallas Fed manufacturing fell a bit below consensus, though still reported steady new orders and rising employment.

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.