The stock market remains on track for a modestly higher opening, which is supported by some early momentum across semiconductor and other AI-related tech names against a backdrop of falling oil prices.

The S&P 5000 enters today's session roughly 1.5% off its all-time high from June 2, with the index advancing in 100 of the last 12 weeks.

The S&P 500 futures currently trade five points above fair value.

Equity indices in the Asia-Pacific region started the week on a mostly higher note with Japan's Nikkei (+1.6%) and South Korea's Kospi (+0.7%) settling at fresh records. Reports from China suggest that consumer demand was a little light on Friday, which was the country's second-largest shopping festival of the year. The People's Bank of China left its one-year and five-year loan prime rates at their respective 3.50% and 5.00%. Nikkei reported that Japan plans to invest JPY10.5 trln in AI-related projects by 2040. Expectations for another rate hike from the Bank of Japan are on the rise, with the market growing confident that the increase will be announced no later than October.

• In economic data:
  • China's May FDI -8.6% YTD (last -10.3%)
  • New Zealand's May Credit Card Spending 5.1% yr/yr (last 3.1%)

---Equity Markets---

• Japan's Nikkei: +1.6%
• Hong Kong's Hang Seng: -0.7%
• China's Shanghai Composite: +1.8%
• India's Sensex: +0.4%
• South Korea's Kospi: +0.7%
• Australia's ASX All Ordinaries: -0.2%

Major European indices trade in mixed fashion. Disgraced British Prime Minister Starmer finally announced his resignation earlier today. There is a high likelihood that Greater Manchester Mayor Burnham will run to become the next leader of the Labour party, which would also make him the seventh prime minister in the past ten years. Discount carrier EasyJet rejected three takeover offers from a U.S. investor.

• In economic data:
  • Switzerland's May M3 Money Supply CHF1.23 trln (last CHF1.23 trln)

---Equity Markets---

• STOXX Europe 600: UNCH
• Germany's DAX: UNCH
• U.K.'s FTSE 100: +0.6%
• France's CAC 40: -0.5%
• Italy's FTSE MIB: -0.4%
• Spain's IBEX 35: +0.8%

The S&P 500 futures currently trade three points above fair value.

Crude oil is currently down $1.31 (-$1.7) to $74.54 per barrel as negotiations between the U.S. and Iran continue to point to the feasibility of a more permanent deal. Bloomberg reports that Iran touted "major progress" after talks in Switzerland over the weekend.

Equity futures point to a flattish opening this morning as investors monitor mostly optimistic updates on negotiations between the U.S. and Iran coming off the long holiday weekend. The two sides signed a 60-day memorandum of understanding in the previous week, pushing oil prices sharply lower and helping the major averages recover from a post-FOMC meeting selloff to finish higher for the week.

The FOMC kept rates unchanged, but struck a hawkish tone, which bumped up the market's expectations and timeline of a rate hike. Inflation readings will come fully into focus later in the week with Thursday's release of the May Personal Income and Spending Report, which includes the PCE Price Index (Briefing.com consensus 0.4%), the Fed's preferred inflation gauge.

Meanwhile, economic data is on the lighter side today.

Earnings will be lighter throughout the week, with just a handful of S&P 500 names set to report. There is a mega-cap tech/AI component to this week's earnings with Micron (MU 1,182.32 +48.33, +4.3%) set to report Wednesday afternoon.

In corporate news:

• AbbVie (ABBV 219.91, +3.42, +1.6%) and Apogee Therapeutics (APGE 133.13, +42.75, +47.3%) enter into a definitive agreement under which AbbVie will acquire Apogee for $135.11 per share in cash.
• Alphabet (GOOG 360.99, -6.47, -1.8%) had a top AI researcher leave the company to join Anthropic, according to Reuters.

Equity indices in the Asia-Pacific region started the week on a mostly higher note with Japan's Nikkei (+1.6%) and South Korea's Kospi (+0.7%) settling at fresh records. Japan's Nikkei: +1.6%, Hong Kong's Hang Seng: -0.7%, China's Shanghai Composite: +1.8%, India's Sensex: +0.4%, South Korea's Kospi: +0.7%, Australia's ASX All Ordinaries: -0.2%.

In news:

• Reports from China suggest that consumer demand was a little light on Friday, which was the country's second-largest shopping festival of the year.
• The People's Bank of China left its one-year and five-year loan prime rates at their respective 3.50% and 5.00%.
• Nikkei reported that Japan plans to invest JPY10.5 trln in AI-related projects by 2040.
• Expectations for another rate hike from the Bank of Japan are on the rise, with the market growing confident that the increase will be announced no later than October.

In economic data:

• China's May FDI -8.6% YTD (last -10.3%) o New Zealand's May Credit Card Spending 5.1% yr/yr (last 3.1%)

Major European indices trade in mixed fashion. STOXX Europe 600: +0.2%, Germany's DAX: -0.1%, U.K.'s FTSE 100: +0.5%, France's CAC 40: -0.4%, Italy's FTSE MIB: -0.4%, Spain's IBEX 35: +0.6%.

In news:

• Disgraced British Prime Minister Starmer finally announced his resignation earlier today.
• There is a high likelihood that Greater Manchester Mayor Burnham will run to become the next leader of the Labour party, which would also make him the seventh prime minister in the past ten years.
• Discount carrier EasyJet rejected three takeover offers from a U.S. investor.

In economic data:

• Switzerland's May M3 Money Supply CHF1.23 trln (last CHF1.23 trln)

[BRIEFING.COM] The stock market finished a bumpy week on a higher note, with exceptional tech leadership and stable oil prices helping the S&P 500 (+1.1%), Nasdaq Composite (+1.9%), and DJIA (+0.1%) rebound from yesterday's FOMC-driven selloff and lock in weekly gains.

The top-weighted information technology sector (+2.7%) closed with the widest gain, buoyed by a strong showing from its semiconductor components. Intel (INTC 133.99, +12.89, +10.64%) locked in a double-digit gain after President Trump confirmed the company will partner with Apple (AAPL 298.01, +2.06, +0.70%) to design and manufacture Apple's chips in the U.S.

Micron (MU 1133.99, +90.80, +8.70%) surged alongside other memory names following a flurry of price target increases, and the PHLX Semiconductor Index finished 6.4% higher, pushing its year-to-date gain past 100%.

Elsewhere in the technology sector, Accenture (ACN 130.54, -25.46, -16.32%) finished as the S&P 500's worst performer after issuing disappointing forward guidance with its earnings release, weighing on other IT services names such as Cognizant Tech (CTSH 43.70, -5.12, -10.49%) and IBM (IBM 249.10, -13.25, -5.05%).

While semiconductor names were a point of relative strength amid yesterday's FOMC-driven retreat, today's action featured considerably stronger performances from mega-cap names outside the information technology sector. Amazon (AMZN 244.39, +6.89, +2.90%) posted a nice gain after Bloomberg reported the company is considering selling its Trainium AI chips to external data centers in a push to challenge NVIDIA's (NVDA 210.69, +6.04, +2.95%) dominance, while Alphabet (GOOG 367.46, +5.36, +1.48%) and Meta Platforms (META 577.22, +9.64, +1.70%) rebounded from sharply lower finishes yesterday.

The consumer discretionary (+1.8%) and communication services (+1.1%) sectors both outperformed after closing with the widest losses in yesterday's session, and the Vanguard Mega Cap Growth ETF finished 1.8% higher.

The consumer discretionary sector was also a beneficiary of today's macro and geopolitical developments. President Trump signed a 60-day memorandum of understanding aimed at ending the conflict in Iran, which would reopen the Strait of Hormuz and reduce risks to global energy supplies. Oil prices moved sharply lower before paring most of their losses to finish little changed, though crude still ended the week only about $10 per barrel above levels seen before the start of the U.S. military campaign against Iran.

Oil- and rate-sensitive stocks outperformed, with Carvana (CVNA 66.55, +3.69, +5.87%) and DoorDash (DASH 173.46, +7.80, +4.71%) finishing as the consumer discretionary sector's top performers.

Homebuilders such as PulteGroup (PHM 126.96, +5.08, +4.17%) and Lennar (LEN 89.73, +3.25, +3.76%) also posted solid gains, sending the iShares U.S. Home Construction ETF 3.6% higher.

Similarly, building and construction names in the industrials sector (+0.7%) helped the sector notch a higher finish, with electrical names rallying alongside semiconductors.

The rate-sensitive utilities sector (+0.7%) rounds out the five S&P 500 sectors that finished higher, despite a weaker showing from other defensive-oriented sectors such as health care (-0.9%) and consumer staples (-0.6%). Kroger (KR 56.61, -5.21, -8.43%) was a laggard after a slight EPS miss and underwhelming forward guidance.

Unsurprisingly, the energy sector (-1.7%) finished with the widest loss amid the MOA signing between the U.S. and Iran, while other cyclical sectors, such as the financials (-0.9%) and materials (-0.4%) sectors, also lagged.

Outside of the S&P 500, the Russell 2000 (+2.1%) outperformed amid the improving macro backdrop, while the S&P Mid Cap 400 (+1.1%) also captured a nice gain.

Overall, today's session represented a solid rebound from yesterday's FOMC-driven weakness, as investors appeared willing to look past the Fed's more hawkish tone and continue buying into areas of recent strength. Semiconductor stocks once again provided the market's primary leadership, while easing geopolitical tensions and stable oil prices helped broaden participation and support a constructive finish to the week.

As a reminder, the market will be closed tomorrow for the Juneteenth holiday.

U.S. Treasuries finished the holiday-shortened week in mixed fashion, sending the 30-year yield note yield to a two-month low (4.90%) while the 2-year yield settled at its highest level since February 2025.

The 2-year note yield settled up two basis points to 4.18% (+9 basis points this week), and the 10-year note yield settled down one basis point to 4.45% (-6 basis points this week).

• Russell 2000: +20.1% YTD
• S&P Mid Cap 400: +14.7% YTD
• Nasdaq Composite: +14.1% YTD
• S&P 500: 9.6% YTD
• DJIA: +7.3% YTD

Reviewing today's data:

• Weekly Initial Claims 226K (Briefing.com consensus 226K); Prior was revised to 230K from 229K, Weekly Continuing Claims 1.810 mln; Prior was revised to 1.786 mln from 1.795 mln
  • The key takeaway from the report is the steady level of initial jobless claims-a leading indicator-which suggests the continuation of low firing activity overall.
• June Philadelphia Fed Index 10.3 (Briefing.com consensus 10.0); Prior -0.4
• May Leading Economic Index 0.1% (Briefing.com consensus 0.1%); Prior was revised to 0.2% from 0.1%