S&P futures are up 0.8% Thursday morning, rebounding after Wednesday’s post-FOMC selloff, when more than 85% of S&P 500 stocks declined. Big Tech and rate-sensitive areas such as housing and retail were among the weakest groups, while semis outperformed after Tuesday’s pullback. Asian markets were mostly higher overnight, led by South Korea and Japan, while Greater China lagged. European markets are modestly lower. Treasuries are firmer with curve bull flattening after Wednesday’s bearish flattening move, the dollar is up 0.5%, gold is down 2.1%, silver is off 3.5%, Bitcoin futures are little changed, and WTI crude is down 2.6%.
Markets have quickly shifted back toward the AI demand narrative, with semis, memory, and hardware rallying despite hawkish FOMC takeaways that drove front-end yields and bond volatility higher. Lower oil is also supportive after the U.S. and Iran signed their MOU earlier than expected, with the agreement viewed as favorable for energy supply. Outside of the Fed, Warsh’s debut, the Iran deal, and AI momentum, the tape is quiet, with some focus turning to a near-term catalyst vacuum before Q2 earnings begin in mid-July. Consensus currently expects nearly 22% S&P 500 earnings growth in Q2.
Economic Calendar
Today brings June Philly Fed manufacturing and initial claims. Philly Fed is expected to improve to 10.0 from -0.4, while claims are expected to slip to 225K from 229K. Next week is quieter, with flash PMIs and ADP weekly payrolls Tuesday, new home sales Wednesday, PCE inflation Thursday, and final University of Michigan sentiment Friday.
Company News
- AAPL: CEO Tim Cook said Apple will need to raise prices in response to higher memory and storage costs.
- MSFT: Bloomberg highlighted Microsoft’s sizable AI model business in China.
- INTC: Higher after Trump confirmed Apple agreed to work with Intel on chip design and manufacturing.
- STLD: Weaker after guiding Q2 EPS below consensus, with timing issues and ADI asset writedowns offsetting upbeat demand commentary.
- NUE: Guided Q2 EPS well above expectations, citing higher average selling prices, stable steel-mill volumes, and an increase in the value of its fusion-energy investment.
- BIIB: Agreed to acquire RayThera for up to $1B.
U.S. equities finished lower Wednesday, ending not far from worst levels after a hawkish FOMC meeting triggered a broad post-Fed selloff. The Dow fell 0.98%, the S&P 500 declined 1.21%, the Nasdaq lost 1.34%, and the Russell 2000 dropped 0.72%. The S&P 500 is now slightly lower for the week. The main macro story was the Fed’s shift toward a more restrictive path: officials left rates unchanged, but 9 of 18 policymakers penciled in at least one rate hike for 2026, while the median dots for 2027 and 2028 also moved higher. Markets are now pricing roughly 25 bp of hikes by September and 38 bp through year-end. The FOMC statement was meaningfully shortened, with little forward guidance, while Chair Warsh reiterated the Fed’s commitment to price stability and said rates are not restrictive outside housing. Treasuries sold off sharply at the front end, with the 2-year yield up 16 bp to 4.21%, the 10-year up 6 bp to 4.50%, and the 30-year down 1 bp to 4.93%. The dollar index rose 1.0%, Bitcoin futures fell 2.3%, and WTI crude settled near flat at $76.02 after falling nearly 10% over the prior two sessions.
Economic data were firmer, adding to the hawkish Fed backdrop. Headline retail sales, ex-auto sales, and control-group sales all beat expectations and hit two-month highs, supported by gains in e-commerce and furniture, though food services and drinking places declined m/m. Pending home sales also beat, rising at the fastest pace since September 2024. Thursday brings Philly Fed manufacturing and initial claims, capping a holiday-shortened week with U.S. markets closed June 19 for Juneteenth. Geopolitical headlines were quieter, with markets still largely treating the U.S.-Iran agreement as done despite ongoing questions around financial relief, Lebanon, and Strait of Hormuz shipping. Axios reported the official signing could be pulled forward and conducted remotely.
Sector performance was broadly negative. Industrials held up best, down 0.12%, followed by Financials -0.52%, Technology -0.61%, and Energy -1.15%. The largest laggards were Communication Services -2.98%, Consumer Discretionary -2.69%, Real Estate -2.47%, Consumer Staples -2.08%, Healthcare -1.41%, Materials -1.35%, and Utilities -1.29%. Semis and memory were notable relative leaders after Tuesday’s short-lived selloff, while investment banks, machinery, aerospace and defense, electricals, and multis also outperformed. Laggards included big tech, staples, homebuilders, regional banks, trucking, rails, parcels/logistics, exchanges, telecom, and MedTech.
Information Technology
- INTC +3.4%: Announced that its advanced 18A-P chip has entered early production, meeting initial timeline expectations.
- AEHR +7.4%: Received a follow-on order from a major silicon photonics customer for a fully automated wafer-level burn-in system. The customer expects to need additional systems this year for data-center deployments.
- SHAZ +10.9%: Announced an oversubscribed $1.6B strategic financing to accelerate expansion of AI factories across Australia and Asia-Pacific.
- JBL: Reported a beat with guidance ahead, highlighting AI-related demand as a key tailwind.
- Anthropic: Trump said talks with the company are “going fine” amid the ongoing Mythos dispute.
- Genspark: AI startup reportedly valued at $2.6B in its latest funding round.
Communication Services
- LION -6.2%: Fell after Netflix denied a Semafor report that it was interested in acquiring Lionsgate Studios. The stock had rallied nearly 14% Tuesday on the original report.
- ASTS +3.9%: Announced the successful orbital launch of BlueBirds 8, 9, and 10.
Consumer Discretionary
- LZB +14.8%: Fiscal Q4 EPS, operating income, and revenue all beat, while Q1 revenue guidance came in ahead of the Street. Analysts highlighted accelerating retail comps, stronger conversion, average ticket, and design sales offsetting lower traffic. The company also announced a $300M buyback.
- KMX -9.0%: Q1 earnings and revenue beat, and used retail unit comps were ahead of consensus. However, retail gross profit per unit was pressured by pricing actions, and analysts noted a higher bar after the report.
- BIRD +39.1%: Appointed Nadia Carlsten as President and CEO, completed the sale of Allbirds assets, and changed its name to Smartbird.
- ZGN -4.0%: Downgraded to neutral from buy at Goldman Sachs, which cited strong share performance and substantial outperformance versus luxury peers.
Financials
- CME -3.5%: CEO Terry Duffy will step down effective March 2027, with CFO Lynne Fitzpatrick named as the next CEO.
- CME Group: Leadership transition weighed on the exchange group, which was among the broader Financials laggards.
Healthcare
- QURE +78.4%: Announced plans to submit a BLA for AMT-130 in Huntington’s disease in Q3 2026.
- IQV -4.7%: Downgraded to equal weight from overweight at Morgan Stanley, which cited margin concerns and better opportunities among peers.
- MedTech: Lagged alongside broader Healthcare weakness.
Industrials
- GEV +6.8%: Initiated outperform at Bernstein, which said GE Vernova is positioned to become an end-to-end power and electrification equipment and services provider.
- LDOS -4.3%: Downgraded to neutral from buy at BofA, which cited increasing pressure on the company’s healthcare portfolio, partly offset by recognized value in its defense business.
- SpaceX: Retail investors poured into U.S. equities at a record pace on the day of the SpaceX IPO, according to Citadel, exceeding the prior record by 58%.
- EigenQ: Quantum technology company agreed to go public through a $3B SPAC deal.
Utilities
- ORA -5.9%: Initiated underperform at Bernstein, which cited valuation, exploration risk in conventional geothermal, and competitive pressures.
Energy
- Saudi Aramco: Reportedly considering selling a stake in its sulfur business, which could raise up to $7B.
- TotalEnergies: Said a major Saudi refinery will not fully recover from Iran-war-related disruptions until 2027.
- Iraq: Preparing to boost oil exports from its southern ports once the Strait of Hormuz fully reopens.
Eco Data Releases | Thursday June 18th, 2026
S&P 500 Constituent Earnings Announcements | Thursday June 18th, 2026
Data sourced from FactSet Research Systems Inc.
