S&P futures are up 0.2% Wednesday morning after Tuesday’s momentum unwind, led by sharp pressure in memory and semis. Alts and select cyclicals also lagged, while defensives such as Staples and Healthcare outperformed, and some software/AI losers held up better. Asian markets were mixed overnight, though South Korea bounced more than 3% after Tuesday’s 10% selloff. Europe is slightly weaker. Treasuries are unchanged to a bit firmer, the dollar is up 0.2%, gold is down 1.3%, silver is off 1.1%, Bitcoin futures are up 0.4%, and WTI crude is down 1.9%.
The main focus is a modest bounce in momentum, supporting the view that the recent selloff may be more technical and positioning-driven than a fundamental break in the AI story. However, elevated volatility remains a key concern, particularly around leveraged ETFs and crowded semi/memory exposure. Micron earnings after the close should refocus attention on the AI capex tailwind, though expectations are high. Lower oil is another support for risk sentiment as Strait of Hormuz reopening headlines continue, while Trump has ordered the DOJ to examine why gasoline prices have not fallen more. Rates also remain in focus amid ongoing discussion of a more hawkish central-bank reaction function.
Economic Calendar
May new home sales are due this morning, and Treasury will auction $70B of 5-year notes. The Fed releases annual bank stress-test results after the close. Thursday brings 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
- FDX: Lower after earnings despite mostly positive sell-side takeaways, with focus on a high bar, spin-related noise, and the move to calendar-year guidance.
- NKE: Announced a CFO transition and said fiscal Q4 results will be generally in line with prior guidance.
- CBRS: Lower after earnings despite a beat, better guidance, and positive deal commentary, with scrutiny on gross-margin guidance.
- ICLR: Takeaways highlighted strong book-to-bill.
- GME: Plans to scrap a performance award previously granted to CEO Ryan Cohen after it drew scrutiny.
- KBH: Results were viewed as largely in line, with positive sentiment around build-to-order upside.
- WOR: Weaker after a fiscal Q4 miss.
- QCOM: Reportedly in talks to provide custom chip-design services to ByteDance.
- MS: Private-credit fund capped redemptions at 5% versus withdrawal requests of 11.6%.
- GOOGL / VZ: Alphabet will replace Verizon in the Dow Jones Industrial Average.
- HONAV: Honeywell Automation will join the S&P 500.
U.S. equities finished lower Tuesday, though stocks ended off worst levels and breadth was slightly positive. The Dow slipped 0.09%, the S&P 500 fell 1.44%, the Nasdaq declined 2.21%, and the Russell 2000 lost 0.96%. The equal-weight S&P 500 outperformed the cap-weighted index by roughly 110 bp, highlighting the narrow nature of the pressure. Momentum, memory, and semis were the main drags, with Micron down sharply ahead of earnings after heavy selling in South Korean memory names. Treasury yields declined 1–3 bp, partially reversing Monday’s backup, while the dollar rose 0.4% to its highest level since May 2025. Gold fell 1.7%, silver dropped 5.4%, Bitcoin futures declined 3.3%, and WTI crude settled down 0.7% to $73.35 after falling more than 2.5% Monday.
The market narrative centered on a momentum unwind rather than a broad fundamental reset. AI scrutiny remained in the background, including open-source competition, frontier-model cost pressure, capex ROI concerns, and speculation around a shift from HBM4 to DRAM, but the selling appeared more tied to market structure, concentration, and leveraged exposure. Flash PMIs were stronger than expected, with manufacturing at a 49-month high and services at a four-month high, supporting the solid-growth narrative, though employment softened and price measures remained elevated. Richmond Fed manufacturing missed, with weaker shipments, contractionary employment, and higher price indexes. ADP’s weekly payroll estimate improved to 30.75K, breaking a four-week streak of declines. The $69B 2-year Treasury auction stopped through by 0.3 bp, though the 4.189% yield was the highest since January 2025. Focus now turns to new home sales and the 5-year auction Wednesday, bank stress-test results after the close, and Thursday’s PCE inflation, claims, durable goods, and 7-year auction.
Sector performance was defensive. Consumer Staples led, up 1.77%, followed by Healthcare +1.37%, Real Estate +1.35%, Utilities +0.83%, Energy +0.68%, and Financials +0.36%. Communication Services fell 0.33% and Consumer Discretionary declined 0.93%. Technology was the clear laggard, down 3.66%, followed by Industrials -2.03% and Materials -1.60%. Outperformers included quantum computing, airlines, regional banks, pockets of insurance, tobacco, food, grocers, household products, discounters, MedTech, and pharma. Laggards included memory, semis, cruise lines, copper, E&Cs, machinery, multis, private equity and asset managers, auto suppliers, tech components, networking/IT equipment, and China tech.
Information Technology
- MU -13.2%: Sold off with South Korean memory names, as SK Hynix and Samsung Electronics both fell more than 12%. Micron reports Wednesday after the close, with the stock up more than 320% YTD and 880% over the past year.
- QCOM: Reportedly in talks to acquire AI infrastructure software firm Modular for roughly $4B.
- IBM +5.0%: Benefited from Trump’s executive order to accelerate quantum computing, with the administration targeting a powerful quantum computer for research and cybersecurity by 2028. JPMorgan also upgraded the stock to overweight, citing AI tailwinds and expected software acceleration.
- CDW +5.3%: Upgraded to overweight from equal weight at Morgan Stanley, which cited discounted valuation and strong demand trends in servers, storage, and networking.
- ZETA +5.6%: Announced a partnership with Palantir to build unified data and AI infrastructure for marketing and operational intelligence.
Communication Services
- SPCX: Raised $25B in debt after attracting roughly $89B of orders for its first investment-grade bond sale.
- OpenAI: Its cybersecurity model reportedly has capabilities similar to Mythos but has not attracted the same level of public attention or political scrutiny.
- Meta: Announced a new range of lower-cost AI smart glasses with EssilorLuxottica. Separately, CEO Mark Zuckerberg reportedly directed a team to create a prediction-markets competitor to Kalshi and Polymarket.
- AMC: Declined sharply after announcing a roughly $200M secondary offering.
Consumer Discretionary
- CCL -4.9%: Q2 EPS and EBITDA beat, but revenue missed and Q3 EPS/EBITDA guidance came in below Street expectations. Management raised FY26 EPS and net-yield forecasts but cut EBITDA guidance and raised cruise-cost assumptions, citing logistics pressure tied to Middle East disruption.
- FIVE -3.9%: Downgraded to peer perform from outperform at Wolfe Research, which cited slowing top-line growth and fading consumer trends.
- ROST -3.3%: Downgraded to equal weight from overweight at Wells Fargo, which cited worsening low-end consumer trends, tough comps, and inventory-flow concerns.
- TGT +3.4%: Upgraded to outperform from peer perform at Wolfe Research and named a top pick, with the firm citing store resets, improved execution, and a new leadership team.
- CAR +2.2%: Disclosed it will receive $650M in cash from a settlement with Pentwater Capital Management related to short-swing profits.
- WEN: Named industry veteran Steve Cirulis as CFO.
Consumer Staples
- EPC +15.4%: Bloomberg reported Edgewell rejected an unsolicited $30/share takeover offer from Yellow Wood Partners, with the board viewing the proposal as too low.
- WMT: Agreed to acquire Vibe.co for roughly $1.4B to expand its connected-TV advertising business.
- KDP: Reaffirmed guidance and highlighted strong momentum.
Energy
- UUUU -4.0%: Announced an agreement to acquire VAC from Ara Partners for roughly $1.9B in cash and stock, with closing expected in early 2027.
- Energy sector: Outperformed despite another decline in crude, as the group benefited from stabilization in select names after recent pressure.
Financials
- HOOD: Announced plans to raise $2B through a convertible bond offering to repurchase shares and fund hedging costs.
- Goldman Sachs: Traders are reportedly on track to generate more than $5B of revenue in Q2.
- Financials +0.36%: Outperformed modestly, helped by regional banks and pockets of insurance, though private equity and asset managers lagged.
Healthcare
- PFE: Experimental lung-cancer treatment missed its primary goal of improving survival.
- Healthcare +1.37%: Outperformed on strength in MedTech and pharma.
Industrials
- PRIM -21.6%: Cut guidance for the fourth straight time due to renewables cost overruns and delayed project starts. The company also announced its COO departure, adding to execution concerns.
- FDXF +3.4%: Initiated buy at Jefferies, which called FedEx Freight a standalone industry leader at trough margins with a path to more than 350 bp of margin upside.
- KFY +5.8%: Q4 EPS, fee revenue, and adjusted EBITDA beat consensus. Fee revenue rose 7% y/y, helped by double-digit growth in Professional Search & Interim, while Q1 guidance was in line to slightly ahead.
Materials
- Materials -1.60%: Underperformed, weighed down by copper weakness and broader pressure on cyclical materials groups.
Eco Data Releases | Wednesday June 24th, 2026
S&P 500 Constituent Earnings Announcements | Wednesday June 24th, 2026
Data sourced from FactSet Research Systems Inc.
