S&P futures are up 0.1% Wednesday morning after a mixed Tuesday session that saw the Dow close at a new record while the S&P 500, Nasdaq, and Russell 2000 finished lower. The semi selloff was the main story, though it followed a 15%+ rally over the prior three sessions. Energy lagged again on crude weakness, while machinery, multis, building materials, homebuilders, alternatives, precious metals, and travel/leisure outperformed. Asian markets were mostly higher overnight, led by South Korea, and European markets are modestly higher. Treasuries are unchanged to slightly firmer, the dollar is little changed, gold is up 0.3%, silver is down 0.1%, Bitcoin futures are down 1.3%, and WTI crude is little changed after falling nearly 10% over the prior two sessions.
The market is quiet ahead of this afternoon’s FOMC decision. The announcement itself is widely expected to be a non-event, with Chair Warsh’s first press conference the bigger focus. Investors are watching whether the Fed removes its easing bias, whether the 2026 median dot no longer shows a rate cut, and whether Warsh signals a dovish stance or a shift toward less forward guidance. Outside the Fed, attention remains on Friday’s expected signing of the 14-point U.S.-Iran MOU, especially the scope of financial relief for Tehran and the timeline for normalizing Strait of Hormuz traffic.
Economic Calendar
May retail sales and pending home sales are due this morning. Headline retail sales are expected to rise 0.5% m/m, in line with April, while core retail sales are expected to rise 0.3% after April’s 0.5% gain. The FOMC decision and updated SEP are due at 2:00 p.m. ET, followed by Warsh’s press conference at 2:30 p.m. ET.
Company News
- INTC: Higher after announcing production has begun on its most advanced chip node, 18A-P.
- AZO: Increased its buyback authorization by $1.5B.
- FISV: Saw multiple insider-buy disclosures after Tuesday’s close, following a rebound from Monday’s CEO-departure-driven selloff.
- LION / NFLX: Lionsgate Studios weaker after reports Netflix is not interested in an acquisition, reversing some deal-speculation strength.
- LZB: Higher after a fiscal Q4 beat, with strength in retail written and delivered sales. The company also authorized a $300M buyback.
U.S. equities finished mostly lower Tuesday, giving back some of Monday’s sharp rally after three straight gains. The Dow rose 0.64% to a fresh record close, while the S&P 500 fell 0.57%, the Nasdaq declined 1.15%, and the Russell 2000 lost 0.87%. The session looked more like consolidation than a broad risk-off move, with profit-taking in semis, memory, and software following a nearly 16% three-day rally in the SOX. Treasuries were firmer with some curve flattening, with the 2-year yield down 1 bp to 4.06%, the 10-year down 3 bp to 4.44%, and the 30-year down 3 bp to 4.94%. The dollar slipped 0.1%, Bitcoin futures fell 1.4%, gold was little changed, silver dipped 0.2%, and WTI crude dropped 5.1% to $76.60, its lowest close since March 4.
Macro focus remained on the pending U.S.-Iran memorandum of understanding, which is expected to be signed Friday near Lucerne, Switzerland. The full text is still not public, leaving unresolved questions around the timing of Strait of Hormuz normalization, the role of Israel and Lebanon, and the path toward final nuclear negotiations. Reports said the agreement would allow Iran to immediately sell oil and fuel, with waivers covering banking, transport, and insurance services. However, U.S. intelligence reportedly assesses Iran can still shut down Hormuz at will, keeping geopolitical risk from fully clearing. Domestically, the data were mixed. ADP’s weekly private-payroll estimate slowed to 25.5K over the past four weeks, marking a fourth straight deceleration. May housing starts fell 15.4% to the slowest pace since May 2020, and permits also missed. Import and export prices were hotter than expected, while the $24B 20-year Treasury auction stopped through, with the highest foreign demand in two years. Wednesday brings retail sales and the FOMC decision, with no rate change expected but close attention on statement edits and the updated dot plot.
Sector performance was mixed, with Financials leading at +1.49%, followed by Utilities +0.69%, Industrials +0.67%, Communication Services +0.59%, Materials +0.51%, Consumer Staples +0.29%, and Real Estate +0.18%. Healthcare was nearly flat at -0.02%, Consumer Discretionary slipped 0.11%, and Energy declined 0.25%. Technology was the clear laggard, down 2.32%, as semis, memory, software, networking, and communications equipment came under pressure. Outperformers included larger-cap banks, investment banks, insurers, private equity, payments, machinery, multis, building products, hospitals, apparel, and homebuilders. Laggards included China tech, pharma/biotech, managed care, chemicals, road/rail, exchanges, off-price retail, casual dining, food, telecom, media, energy, and retail-investor favorites.
Information Technology
- RXT +5.0%: Signed an agreement with AMD for a phased deployment of 20 MW of AI compute and announced a 15% workforce reduction.
- AMKR +1.3%: Announced a 10-year agreement with TSMC to accelerate advanced packaging in the U.S.
- QCOM: Reportedly in discussions to acquire Tenstorrent to expand its AI chip capabilities.
- MSFT: Reportedly considering a Microsoft-hosted version of DeepSeek as a lower-cost model option.
- HPE / NVDA: HPE announced closer collaboration with Nvidia on AI servers.
- AAPL: Reportedly planning its first AI-focused wearable in 2027, including camera-equipped AirPods.
- Databricks: Announced the acquisition of Panther Labs as it pushes deeper into cybersecurity.
- Palantir: France’s domestic intelligence agency reportedly cut its contract with Palantir and replaced it with local rival ChapsVision.
Communication Services
- NFLX -3.6%: Fell after Semafor reported Netflix is eyeing Lionsgate Studios after losing out on Roku to Fox.
- SNAP: Introduced $2,195 AR-enabled Specs glasses.
- SpaceX: Shares finished higher but well off best levels after briefly surpassing Amazon and Microsoft in market cap. The company also formally agreed to acquire Cursor for $60B, according to reports.
Consumer Discretionary
- YUM +2.0%: Agreed to sell Pizza Hut ex-China to LongRange Capital for roughly $1.5B and the mainland China business to Yum China for about $1.2B. The board also approved an incremental $4B buyback.
- PLAY -6.3%: Q1 earnings, revenue, and operating margin missed expectations, while same-store sales declined more than expected. Management cited intensifying macro pressure during the company’s most important seasonal period but highlighted traction in its turnaround strategy.
- GM / LMT: GM is reportedly in talks with Lockheed Martin to make commonly used parts for weapons production.
- Mobileye: Said it intends to launch its own robotaxi service in the U.S. in 2027.
- Rivian: Announced hundreds of layoffs across service, customer service, sales, and marketing.
Materials
- HUN -17.1%: Announced an all-stock merger of equals with Olin. Huntsman shareholders will own roughly 45.5% of the combined company, OlinHuntsman, with closing expected in the first half of 2027.
- OLN: Announced the all-stock merger with Huntsman, combining the two chemical companies in a merger of equals.
Financials
- HOOD: Announced a 10% workforce reduction, though management said month-to-date trading volumes remain at record levels.
- Binance: Reportedly poised to lose permission to offer services to EU clients within weeks.
Industrials
- LMT / GM: Reuters reported GM is in talks with Lockheed Martin to manufacture commonly used components for weapons production.
Energy
- QatarEnergy: Said it is ready to resume LNG production at Ras Laffan quickly, with remaining issues centered on shipping.
- Russia oil sanctions: Trump said the U.S. could soon reimpose oil sanctions on Russia now that oil is flowing again.
Eco Data Releases | Wednesday June 17th, 2026
S&P 500 Constituent Earnings Announcements | Wednesday June 17th, 2026
Data sourced from FactSet Research Systems Inc.
