S&P futures are down 0.5% and Nasdaq futures are down 1.1% Friday morning after Thursday’s mixed session, when momentum bounced on renewed memory and semi leadership, but Mag 7 weakness weighed on the S&P and Nasdaq. Asian markets sold off sharply overnight, with South Korea down nearly 6% and Japan off more than 4%, while Europe is down 0.8%. Treasuries are firmer, with yields down 2–3 bp, the dollar is off 0.2%, gold is up 0.5%, silver is little changed, Bitcoin futures are up 1.3%, and WTI crude is down 3.6% after snapping a nine-day losing streak Thursday.
The momentum trade is back under pressure following another sharp selloff in Asia. Market-structure and concentration concerns remain the main explanation, though investors are also focused on potential Samsung and SK Hynix investment announcements, demand-destruction risk from memory price hikes, gross-margin sustainability, a possible OpenAI IPO delay, U.S. scrutiny of OpenAI’s next model release, and open-source AI competition. Outside tech, the tape is quiet. Oil is weaker again as the Strait of Hormuz reopening narrative remains intact despite Thursday’s Iranian missile strike, helping push rates lower. Month-end, quarter-end, and Russell rebalancing flows are also in focus.
Company News
- OpenAI: Reportedly leaning toward delaying its IPO until 2027, versus prior expectations for a second-half 2026 listing, amid concerns that recent AI-linked market volatility and SpaceX weakness could complicate the company’s push for a $1T valuation.
- OpenAI / GPT-5.6: The Trump administration reportedly asked OpenAI to limit release of its new GPT-5.6 model, citing security concerns.
- SPCX: Reportedly planning to launch a new mobile service for U.S. customers.
- ON / SYNA: ON Semiconductor agreed to acquire Synaptics in an all-stock deal valued at roughly $7B, representing a 28% premium to Thursday’s close.
- RKLB: Secured a NASA contract for three Electron rocket launches.
Economic Calendar
Today brings the May trade balance and final University of Michigan consumer sentiment and inflation expectations for June. Fed’s Kashkari is also scheduled to speak. Next week’s main event is Thursday’s June employment report, with consensus looking for nonfarm payrolls to rise about 88K after May’s 172K gain and the unemployment rate to hold at 4.3%. June ISM manufacturing is due Wednesday, with the headline expected to hold at 54.0.
U.S. equities were mixed Thursday, with the Dow up 0.14%, the S&P 500 nearly flat at -0.01%, the Nasdaq down 0.46%, and the Russell 2000 up 0.71%. Breadth was positive, and the equal-weight S&P 500 outperformed the cap-weighted index by nearly 70 bp as cyclicals and broadening trades offset weakness in Mag 7 and SpaceX-linked momentum. Treasuries were mostly firmer with curve steepening, extending Wednesday’s rally, while the 10-year yield slipped to 4.39%. The dollar fell 0.2%, gold rose 0.9%, silver gained 0.5%, Bitcoin futures fell 0.9%, and WTI crude rebounded 2.3% to $71.95 after falling nearly 3.5% Wednesday.
The macro narrative was dominated by competing crosscurrents: renewed AI capex optimism, lower-rate support, lingering inflation concerns, and firmer oil after an Iranian attack on a Singapore-flagged cargo ship in the Strait of Hormuz. The market largely looked through the energy headline, with investors still focused on Gulf flow normalization and the broader decline in oil prices. Headline PCE was a bit softer than expected, while core PCE rose 0.3% m/m and 3.4% y/y, in line with consensus. Personal income and spending both topped expectations, initial claims were better than expected, continuing claims deteriorated to a two-month high, and durable goods orders fell 4.5% m/m but were better than feared. Final Q1 GDP was revised up to 2.1%, while the Q1 price index was revised slightly higher to 3.6%. The in-line PCE print and weaker continuing-claims trend helped ease some hawkish Fed fears, though Goolsbee said core inflation remains too high and is trending the wrong way.
Sector performance showed strong rotation beneath a flat index surface. Industrials led, up 2.19%, followed by Healthcare +1.49%, Materials +1.39%, Energy +0.98%, Utilities +0.63%, and Real Estate +0.13%. Technology slipped 0.09%, while Financials fell 0.48%, Communication Services lost 1.02%, Consumer Staples declined 1.08%, and Consumer Discretionary lagged, down 1.78%. Outperformers included memory, semis, banks, investment banks, credit cards, machinery, auto suppliers, airlines, rails, homebuilders, and building materials. Laggards included tech hardware, China tech, software, exchanges, energy-linked laggards, aluminum, discounters, off-price retail, athletic apparel, household products, and QSRs.
Information Technology
- MU +15.7%: Reported blowout fiscal Q3 results and Q4 guidance above elevated expectations. Management said tight supply conditions should persist beyond 2027 and highlighted 16 signed strategic customer agreements with take-or-pay volume requirements and pricing floors.
- QCOM +3.7%: Positive investor-day takeaways centered on diversification and stronger FY29 targets, including $40B in non-handset revenue and $15B in Data Center revenue, supported by four hyperscaler wins.
- IBM: Unveiled the world’s first sub-1 nanometer chip technology.
- AAPL -6.1%: Hit by concerns around higher memory input costs after Micron’s earnings. Apple also announced price hikes across MacBooks and iPads and reportedly plans to skip high-end M6 chips to move directly to an AI-focused M7 chip.
- MSFT: Announced another global Xbox Series console price increase, effective August 1.
- ESTC: Confirmed plans to reduce headcount by 7%.
Communication Services
- BMBL +8.1%: Reportedly exploring a sale and has hired Morgan Stanley, though sources said no deal is certain and the company may remain independent.
- BABA -4.7%: Weighed down by China tech weakness and allegations from Anthropic that Alibaba engaged in large-scale distillation efforts to illicitly access Claude capabilities.
Consumer Discretionary
- KMX +4.2%: Rose after insider buying, with CEO Keith Barr disclosing a purchase of 9.4K shares.
- PSNY -5.0%: Announced plans to exit the U.S. new-vehicle sales market after the Commerce Department denied authorization to sell vehicles in the country.
- PLNT -3.6%: Appointed Sudhanshu Priyadarshi as CFO and President, International, effective immediately.
- Sonos: Announced job cuts affecting 3% of staff across user experience and product teams.
Consumer Staples
- MKC +1.6%: Q2 revenue, gross margin, and EPS beat consensus, with net sales up 17% y/y as Flavor Solutions strength offset some Consumer softness. FY26 guidance was reaffirmed.
Financials
- JEF -9.2%: Q2 revenue and EPS missed, with Advisory, DCM, and FICC trading all below expectations. Equities trading was the standout, but analysts flagged elevated expectations after the stock’s roughly 60% rally from its March low.
- JPM: Announced a dividend increase after Fed stress tests. Separately, Marianne Lake, widely viewed as a top CEO contender, announced her retirement.
- GS / MS / WFC: Among the banks that announced dividend increases following Fed stress-test results.
Healthcare
- TECH +20.0%: Agreed to be acquired by Merck KGaA for $11.3B, or $73/share, representing a 24% premium to the prior close.
- KYMR +16.6%: Reported that enrollment was completed in the KT-621 Phase 2b BroADen trial in atopic dermatitis roughly six months ahead of schedule.
- Bayer: Won a Supreme Court case limiting lawsuits over glyphosate in Monsanto’s Roundup.
Industrials
- AYI +17.6%: Fiscal Q3 results beat expectations, with positive takeaways around 15% y/y AIS sales growth, gross-margin momentum, firming order activity, backlog normalization, and data-center opportunity.
- XYL +4.4%: Upgraded to buy from hold at Jefferies, which said Xylem has lagged the broader industrial valuation expansion despite stable demand and improving margins.
Materials
- CMC +4.0%: Q3 revenue beat, though adjusted EBITDA missed on softer margins and temporary operational headwinds. Management expects Q4 EBITDA to improve sequentially on stronger volumes, margin expansion, healthy demand, and solid backlogs.
- FUL -4.1%: Q2 EPS, EBITDA, and revenue beat, but Q3 revenue-growth guidance was below consensus. The company also agreed to acquire AMS for 285p/share, or about £659M, with closing expected by year-end.
Energy
- Energy-related headlines: Crude exports from the Persian Gulf rebounded to 75% of pre-war levels, while the IMF said energy prices are falling after the U.S.-Iran peace agreement, though full normalization will take time.
Private Credit
- Ares: Investors reportedly attempted to pull more than $1.5B from the firm’s $11B flagship private-credit fund, keeping attention on redemption pressure across private-credit vehicles.
Eco Data Releases | Friday June 26th, 2026
S&P 500 Constituent Earnings Announcements | Friday June 26th, 2026
No constituents report today.
Data sourced from FactSet Research Systems Inc.
