S&P futures are down 1.4% Tuesday morning, with momentum, memory, and semis under outsized pressure after Monday’s mixed session. Big Tech lagged Monday, led by Alphabet, while software, housing, and energy were also weaker. Momentum held up on continued memory and semi strength, and biotech outperformed. Global risk tone is weaker, with South Korea’s KOSPI down roughly 10% overnight and European markets off about 1.4%. Treasuries are firmer with curve bull steepening after Monday’s yield backup. The dollar is up 0.1%, gold is down 1.8%, silver is off 5.1%, Bitcoin futures are down 3.2%, and WTI crude is down 0.4% after falling more than 2.5% Monday.
The risk-off move appears centered on the memory and broader AI trade. There is no clear single catalyst, though concentration concerns, leveraged ETF exposure, open-source model progress, AI capex scrutiny, token-pricing pressure, and ROI questions remain the key explanations. The Fed is also an overhang, both from a more hawkish reaction function and the potential for higher bond volatility after its shift away from forward guidance. Geopolitics remains largely in the background, with little incremental change on U.S.-Iran.
Economic Calendar
Today brings June flash PMIs, Richmond Fed manufacturing, and a $69B 2-year Treasury auction. Wednesday brings May new home sales, a $70B 5-year auction, and annual bank stress-test results after the close. Thursday features May personal income and spending, PCE inflation, initial claims, durable goods, a $44B 7-year auction, and remarks from Williams and Goolsbee. Friday brings the May trade balance, final University of Michigan sentiment and inflation expectations, and remarks from Kashkari.
Company News
- QCOM: Reportedly in talks to acquire AI infrastructure software firm Modular for roughly $4B.
- IBM: Higher after an executive order on quantum computing and positive related comments from Trump.
- PFE: Lower after its experimental lung-cancer treatment missed the main goal of improving survival.
- PSA: Agreed to acquire Public Storage Canada in a deal valued at $1.2B.
- BBY: Lower after news its CFO will depart at the end of July.
- DPZ: Announced CEO succession, with COO and Domino’s U.S. President Joe Jordan taking over from Russell Weiner on October 1.
- CAR: Higher after disclosing it will receive $650M in cash from a settlement with Pentwater Capital Management.
- PRIM: Sharply lower after cutting guidance on additional renewables cost overruns and delays, while also announcing its COO departure.
- EPC: Higher after Bloomberg reported the company rejected an unsolicited $30/share takeover offer from Yellow Wood Partners.
U.S. equities were mixed Monday, ending off worst levels, with the Dow up 0.29%, S&P 500 down 0.37%, Nasdaq down 1.32%, and Russell 2000 up 0.83% to a fresh record high. Big Tech underperformance was the main drag, led by Alphabet on another high-profile AI departure and SpaceX, which is now down more than 30% from last Wednesday’s peak. Semis and memory were the key offset, supported by renewed focus on AI demand, supply-chain constraints, and higher memory pricing ahead of Micron earnings. Treasuries sold off across the curve, with yields up 5 bp and the market now pricing roughly 40 bp of Fed hikes this year. The dollar rose 0.2%, gold fell 0.8%, silver declined 1.1%, Bitcoin futures rose 2.3%, and WTI crude dropped 1.8% to $75.19 as U.S.-Iran talks and improving Strait of Hormuz traffic continued to pressure oil.
The macro backdrop was quiet, with no major economic releases and no material monetary-policy update from Fed Governor Waller. Investors remain focused on the U.S.-Iran talks, where reports said the Strait of Hormuz is seeing its fastest oil flow since the war began, while the U.S. Treasury issued a 60-day general license authorizing production, delivery, and sale of Iranian oil. However, more than 400 large ships are reportedly still waiting east of Hormuz for wider reopening. The rate narrative also stayed in focus, with BofA and Deutsche Bank now calling for Fed hikes this year and more discussion that the Fed’s move away from forward guidance could lift bond volatility and long-end yields. This week’s macro calendar includes Tuesday flash PMIs and Richmond Fed manufacturing, Wednesday new home sales and bank stress-test results, Thursday PCE inflation, initial claims, durable goods, and Friday trade data plus final University of Michigan sentiment and inflation expectations.
Sector performance was uneven. Real Estate led, up 1.38%, followed by Energy +1.24%, Healthcare +0.87%, Industrials +0.76%, Financials +0.54%, Utilities +0.50%, and Materials +0.07%. Technology was nearly flat at -0.04% despite strong semis and memory, while Consumer Staples fell 0.68%. Communication Services was the clear laggard, down 3.83%, followed by Consumer Discretionary down 2.33%. Outperformers included money-center banks, investment banks, energy, airlines, machinery, E&Cs, rails, parcels/logistics, department stores, off-price retail, managed care, and biotech. Laggards included entertainment, software, China tech, casinos, cruise lines, hotels, QSRs, homebuilders, home improvement, aerospace and defense, HVAC, and precious-metals miners.
Information Technology
- SMCI +15.7%: Upgraded to buy from hold at GF Securities, which cited a more favorable risk/reward profile after the recent $7B financing announcement. The company also introduced Nvidia Vera Rubin NVL 4 end-to-end DCBBS blueprint.
- CRDO +11.3%: Initiated outperform at Evercore ISI, which highlighted expanding opportunities in AI networking infrastructure and expects Credo’s optical product portfolio to become a larger growth driver.
- INTC +5.2%: Gained on positive takeaways around the hiring of former SK Hynix CEO Lee Seok Hee as EVP of Intel’s foundry business.
- ACN -2.5%: Downgraded to hold from buy at TD Cowen, which said shares remain vulnerable to AI headlines and model advances, and warned growth may worsen before improving.
- MSFT: CEO criticized the dominance of frontier LLMs and emphasized Microsoft’s strategy around cheaper, more user-controlled AI models.
Communication Services
- GETY +90.1%: Entered a multi-year display deal with OpenAI that will bring Getty Images’ licensed content into ChatGPT search and discovery functions. Terms were not disclosed.
- GOOGL -5.0%: Fell after Google DeepMind data scientist and Nobel Prize winner John Jumper left to join Anthropic, following reports that DeepMind AI researcher Noam Shazeer left for OpenAI.
- NFLX: CEO said the company will look to add more traditional broadcasters to its platform.
- SPCX: Began its first bond sale, seeking to raise at least $20B to repay a bridge loan and support AI plans. The company also agreed to provide computing resources to ReflectionAI in a $150M/month deal through 2029.
Consumer Discretionary
- LCID -3.7%: Announced an 18% reduction in its U.S. workforce and eliminated the COO position. The changes are expected to generate roughly $158M in annualized cost savings.
- VC +5.4%: Upgraded to overweight from neutral at JPMorgan, which cited expectations for meaningful growth outperformance with lower execution risk and improved visibility from recent wins.
- GM +1.4%: Received a positive mention in weekend financial press, with the report highlighting favorable free-cash-flow dynamics and an aggressive capital-return program.
- AMZN: Reportedly giving major brands more control over how their goods appear on its site. Prime Day spending is expected to rise 9% to $26.3B this year.
Consumer Staples
- KO: In a $20B legal dispute with the IRS that could have broader implications for how multinationals shield profits.
Energy
- APA +3.5%: Upgraded to buy from neutral at Roth Capital, which said oil prices may be near a short-term bottom as the Iran ceasefire remains fragile and many E&Ps are down 15–25% from year-to-date highs.
Financials
- HOOD: Seeking to raise $2B through a convertible bond offering to repurchase shares and pay hedging-related costs.
- FDS -3.1%: Downgraded to sell from neutral at Rothschild & Co Redburn, which cited structural pressure on the terminal-based business and risks from AI-driven disintermediation.
Healthcare
- APGE +46.7%: Agreed to be acquired by AbbVie for $135.11/share in cash, valuing the deal at roughly $10.9B and representing a roughly 50% premium to the prior close. The transaction is expected to close in Q3.
- ABBV: Confirmed the acquisition of Apogee Therapeutics for nearly $11B.
- DFTX +49.8%: Emerge trial met its primary endpoint, with DT120 ODT producing statistically significant and clinically meaningful improvement in depression symptoms versus placebo at Week 6.
- INCY +5.5%: Resolved litigation related to Medicaid rebate rules for Opzelura cream and expects to record a one-time, non-cash benefit of roughly $246M in Q2.
Industrials
- ACA +6.7%: Agreed to be acquired by CRH for $150/share in cash, valuing the deal at $8.5B including debt. The price represents a 10.4% premium to the prior close, with closing expected in Q1 2027.
- BWXT +2.2%: Upgraded to buy from neutral at Seaport Research Partners, which cited a stronger foundation for commercial nuclear growth following the PCG acquisition and further expansion of the Mt. Vernon, Indiana facility.
- AVAV -10.8%: Will restate January quarterly results after identifying an $89.4M non-cash goodwill impairment error in its Space unit. The error does not affect revenue, cash flow, adjusted EBITDA, or non-GAAP EPS.
Materials
- CRH: Agreed to acquire Arcosa in an all-cash deal valued at $8.5B including debt.
Eco Data Releases | Tuesday June 23rd, 2026
S&P 500 Constituent Earnings Announcements | Tuesday June 23rd, 2026
Data sourced from FactSet Research Systems Inc.
