[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%

[BRIEFING.COM] The S&P 500 (+0.9%), Nasdaq Composite (+1.5%), and DJIA (+0.2%) remain on track for a higher finish to the week with just half an hour left in the session.

Meanwhile, SpaceX (SPCX 179.65, -12.17, -6.34%) is selling off for the second straight session as investors lock in profits following last Friday's blockbuster IPO, which priced at $135, opened at $150, and quickly turned into one of the most closely watched debuts in market history.

The initial exuberance was fueled by SpaceX's dominant launch position, Starlink's scale, government and defense relationships, Starship optionality, and the scarcity value of a newly public pure-play on space, satellite broadband, AI infrastructure, and national-security technology.

However, the same enthusiasm also pushed valuation to a meteoric level, with the P/S currently sitting at 130x, and that risk is now rearing its head as investors question how much future growth is already priced in after the post-IPO surge.

[BRIEFING.COM] The major averages continue to trade in a tight range as the market enters the final hour of the session.

After opening lower this morning, the communication services sector (+1.0%) has trended steadily higher through the session, now one of today's best-performing S&P 500 sectors.

Alphabet (GOOG 366.76, +4.66, +1.29%) is seeing some relief after a sharply lower finish yesterday. The stock is down around 3% for the month of June and is nearly 10% off its all-time high (408.61) from May 18, though today's gain has it back above its 50-day moving average (364.59).

Elsewhere in the sector, Take-Two (TTWO 239.92, +11.89, +5.21%) is sharply higher after the company's Rockstar Games announced that pre-orders for the eagerly anticipated Grand Theft Auto VI video game will begin on June 25.

[BRIEFING.COM] The S&P 500 (+1.03%) is in second place on Thursday afternoon, up about 76 points.

Briefly, S&P 500 constituents Corning (GLW 192.27, +16.87, +9.62%), Micron (MU 1141.93, +98.74, +9.47%), and Generac (GNRC 284.88, +16.68, +6.22%) pepper the top of the standings. MU caught target raises at Wedbush, Citi, and Stifel (among others) today, while GNRC rallies as investors continue to re-rate it as a key AI data center power beneficiary, supported by recent hyperscaler-related demand, analyst optimism, and ongoing momentum near multi-year highs.

Meanwhile, Cognizant Tech (CTSH 44.29, -4.53, -9.28%) is one of today's worst laggards in sympathy with Accenture (ACN 126.93, -29.08, -18.64%) after its weak results and lowered growth outlook reinforced concerns about slowing enterprise IT services demand and AI-driven budget pressure across the sector.

[BRIEFING.COM] The Nasdaq Composite (+1.67%) is in first place this afternoon (+1.67%), up about 433 points.

Gold futures settled $135.50 lower (-3.1%) at $4,245.90/oz, up about +0.2% on the week, as a stronger U.S. dollar and rising Treasury yields pressured bullion, while expectations for near-term Fed easing faded. The decline also reflected profit-taking after a strong run, with investors rotating out of gold despite lingering geopolitical and inflation risks.

Meanwhile, the U.S. Dollar Index adds +0.4% to $100.80.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.46%) is in last place on Thursday afternoon, up about 235 points.

A look inside the DJIA shows that Caterpillar (CAT 988.95, +33.03, +3.46%), Amazon (AMZN 245.21, +7.71, +3.25%), and Walt Disney (DIS 103.76, +2.90, +2.88%) hold decent gains.

Meanwhile, IBM (IBM 250.45, -11.90, -4.54%) is notably lower today.

The DJIA is poised to end about +1.03% higher on the week.

Also, at the top of the hour, Baker Hughes (BKR 58.72, -1.35, -2.25%) announced a weekly U.S. rotary rig count of 563, +1 w/w and +9 yr/yr.

[BRIEFING.COM] Stocks are mostly higher following yesterday's sell-off that followed a "hawkish pause" on rates from the FOMC, with solid tech leadership pushing the Nasdaq Composite (+1.4%) and S&P 500 (1.0%) firmly higher while the DJIA (+0.3%) holds a more modest gain.

Treasury yields surged in reaction to the Fed's more hawkish tone yesterday, though they have come down somewhat alongside oil prices after President Trump signed a 60-day memorandum of understanding to end the conflict in Iran. As a result, oil- and rate-sensitive stocks and growth stocks are driving the gains at the index level.

The top-weighted information technology sector (+2.4%) holds the widest gain, supported by a rally across semiconductor and other AI-related stocks. The PHLX Semiconductor Index is up 6.2%, with Intel (INTC 133.35, +12.25, +10.12%) a chipmaker standout after President Trump announced the company will partner with Apple (AAPL 297.24, +1.29, +0.44%) to design and manufacture Apple's chips in the U.S.

Elsewhere in the sector, Accenture (ACN 128.15, -27.86, -17.86%) is the worst-performing S&P 500 name after beating earnings expectations but issuing disappointing guidance, which has weighed on other IT services names such as IBM (IBM 249.52, -12.83, -4.89%).

Amazon (AMZN 243.52, +6.02, +2.53%) is generating chipmaking headlines of its own after Bloomberg reported the company is considering selling its Trainium AI chips to external data centers in a push to challenge NVIDIA's (NVDA 210.38, +5.73, +2.80%) dominance. Amazon provides solid leadership for the consumer discretionary sector (+1.5%), which is buoyed by the retreat in oil prices and Treasury yields.

Carvana (CVNA 67.41, +4.55, +7.24%) is the sector's top performer, while cruise lines also post solid gains.

Homebuilders such as PulteGroup (PHM 128.03, +6.15, +5.05%) and Lennar (LEN 90.44, +3.96, +4.58%) are also among the outperformers, contributing to strength in the iShares U.S. Home Construction ETF (+4.5%).

Building-related names such as Builders FirstSource (BLDR 82.22, +6.08, +7.99%) lead strength in the industrials sector (+1.1%), outweighing weakness in aerospace and defense names that follow the improved geopolitical sentiment between the U.S. and Iran.

Meanwhile, the rate-sensitive utilities sector (+1.5%) outperforms despite weakness across other defensive sectors, including health care (-1.0%) and consumer staples (-0.3%).

Outside of the S&P 500, the Russell 2000 (+1.5%) and S&P Mid Cap 400 (+1.0%) also hold solid gains, broadly in line with the major averages.

With just a few hours remaining before tomorrow's holiday closure, the major averages are homing in on solid weekly gains. Stocks have bounced back from yesterday's post-FOMC weakness as easing geopolitical tensions pressure oil prices, while semiconductor names continue to lead the way as investors remain eager to buy recent dips across the sector.

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%

[BRIEFING.COM] The S&P 500 (+1.0%), Nasdaq Composite (+1.3%), and DJIA (+0.3%) remain little changed from previous levels shortly after midday.

Amazon (AMZN 242.92, +5.42, +2.28%) trades at session highs after Bloomberg reported the company is considering selling its Trainium AI chips to external data centers in a push to challenge NVIDIA's (NVDA 209.62, +4.97, +2.43%) dominance. 

In other tech news, Marvell (MRVL 327.60, +38.06, +13.14%) and Tower Semi (TSEM 277.60, +10.47, +3.92%) are both surging higher after announcing that they have shipped more than 5 million coherent photonic integrated circuits, a milestone that underscores the growing importance of optical connectivity in AI-driven data center interconnect networks.

[BRIEFING.COM] The major averages trade in a relatively stable range just before midday.

The consumer staples sector (-0.3%) is one of just four S&P 500 sectors that trade lower today, with many of its components going somewhat overlooked as growth-oriented pockets of the market.

Kroger (KR 57.98, -3.84, -6.21%) is a laggard after its Q1 report delivered a revenue beat but a slight adjusted EPS miss, while management's Q2 commentary pointed to roughly Q1-like identical sales and EPS merely in line with last year. Revenue was $46.12 billion versus $45.59 billion, adjusted EPS was $1.58 versus $1.59, and FY27 EPS guidance of $5.10-$5.30 was reaffirmed, but investors focused on the quality of the quarter, including only +1.0% identical sales ex-fuel, a 9 bps FIFO gross margin decline, and cautious consumer spending.

The issue is not the reaffirmed FY27 guide, but whether KR can show a clearer path from cost savings and digital/media growth to stronger core grocery performance. Q1 showed that management is making progress on controllable profit levers, including sourcing savings, eCommerce growth, retail media profit, and productivity, but that progress was offset by soft identical sales, gross margin pressure, pharmacy headwinds, transportation costs, and a cautious consumer. Investors are likely questioning whether KR can fund lower prices and better store execution without sacrificing margins.

[BRIEFING.COM] The S&P 500 (+1.0%), Nasdaq Composite (+1.3%), and DJIA (+0.5%) hold solid gains this morning, enthused by lower oil prices and Treasury yields, while semiconductor stocks continue to provide solid leadership.

Crude oil is currently down $2.66 (-3.5%) to $73.34 per barrel after President Trump signed a 60-day memorandum of understanding with Iran that includes an immediate reopening of the Strait of Hormuz. The retreat in oil prices has helped Treasuries take back a chunk of yesterday's losses that followed a "hawkish pause" from the FOMC.

Air lines, cruise lines, homebuilders, and other oil-and-rate-sensitive names are outperforming, contributing to relatively broad strength across stocks today. The iShares U.S. Home Construction ETF is up 4.5%.

Semiconductor stocks are also sharply higher today, with the PHLX Semiconductor Index surging 6.5%, keeping the top-weighted information technology sector (+2.5%) seated with the widest gain.

Today's strength extend past the major averages, with the Russell 2000 (+1.6%) and S&P Mid Cap 400 (+1.1%) benefiting from the improved macro and geopolitical backdrop.

[BRIEFING.COM] The major averages continue to steadily trade higher this morning.

The latest batch of earnings reports is generating some notable stock-specific moves, with Accenture (ACN 131.82, -24.19, -15.51%) the worst-performing S&P 500 sector after its Q3 earnings release this morning. Today's weakness extends what has already been a difficult year for the stock as investors have grown more concerned about soft discretionary consulting demand, U.S. federal weakness, and the pace at which AI-related work is converting into reported growth. The company beat EPS expectations, while revenue increased 5.6% year-over-year to $18.72 billion, roughly in line with expectations. The larger concern appears to be the forward setup, as new bookings declined year-over-year and Accenture trimmed its FY26 revenue growth outlook to 3% to 4% in local currency, down from 3% to 5%.

The Middle East conflict added another layer of pressure, with management citing a revenue impact in consulting-type work, weaker sales activity in the region, and longer decision-making in EMEA. That is exacerbating the broader concern around whether demand is converting quickly enough.

Accenture's move weighs on the broader IT services sector, with IBM (IBM 247.67, -14.68, -5.60%) the worst-performing Dow component.

[BRIEFING.COM] The S&P 500 (+0.8%) and Nasdaq Composite (+1.0%) are near session highs, while select pockets of weakness keep the DJIA (+0.3%) seated with a more modest gain.

The consumer discretionary sector (+0.6%) is clawing back a chunk of yesterday's loss, which left it among the worst-performing S&P 500 sectors. The sector is one of the top beneficiaries of the "yields down, oil down, stocks up" move that is unfolding this morning following yesterday's backup in yields.

Carvana (CVNA 67.09, +4.23, +6.73%), which is particularly sensitive to changes in borrowing costs, is the sector's top performer.

Meanwhile, homebuilders such as PulteGroup (PHM 127.52, +5.64, +4.63%), D.R. Horton (DHI 159.57, +7.09, +4.65%), and Lennar (LEN 90.30, +3.82, +4.41%) also outperform, contributing to a solid gain in the iShares U.S. Home Construction ETF (+4.1%).

[BRIEFING.COM] The S&P 500 (+0.8%), Nasdaq Composite (+1.0%), and DJIA (+0.4%) are higher this morning as the market looks to rebound from yesterday's post-FOMC meeting weakness through a combination of tech leadership and lower oil prices.

The information technology sector (+1.9%) is leading the advance as semiconductor stocks see an extension of yesterday's gains. Intel (INTC 129.58, +8.48, +7.00%) is a standout after President Trump said Apple (AAPL 298.79, +2.84, +0.96%) will collaborate with the company to produce its chips in the U.S., and the PHLX Semiconductor Index is 4.9% higher.

Memory names such as Western Digital (WDC 788.07, +75.94, +10.66%) and Sandisk (SNDK 2129.75, +170.95, +8.73%) are also sharply higher.

Elsewhere, the industrials sector (+1.6%) also outperforms, with electrical product names such as Vertiv (VRT 331.75, +14.17, +4.46%) keeping with their recent trend of trading higher in conjunction with semiconductor names.

Construction-related stocks are also surging higher, supported by retreating oil prices and Treasury yields following news that President Trump signed a 60-day memorandum of understanding with Iran.

Crude oil is currently down $2.70 (-3.6$) to $73.31 per barrel, and yields are at least five basis points lower across the curve.

The lower price of oil weighs on the energy sector (-2.2%), while several more defensive-oriented sectors hold modest losses as tech names move higher.

However, mega-cap tech stocks outside of the information technology sector continue to face weakness, with Alphabet (GOOG 358.91, -3.19, -0.88%) and Meta Platforms (META 566.75, -0.83, -0.15%) weighing on the communication services sector (-0.9%).

Just released, the Leading Economic Index increased 0.1% in May (Briefing.com consensus 0.1%) from a prior increase of 0.1%.

The stock market remains poised for solid gains at the open as the market looks to spring back from yesterday's retreat, with chipmakers set to lead the advance.

On the data front, initial jobless claims for the week ending June 13 decreased by 4,000 to 226,000 (Briefing.com consensus: 226,000), while continuing jobless claims for the week ending June 6 increased by 24,000 to 1.810 million.

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.

Separately, the Philadelphia Fed Index bounced back into expansion territory, printing a reading of 10.3 (Briefing.com consensus: 10.0) versus -0.4 in the prior month. The line between expansion and contraction for this report is 0.0.

The S&P 500 futures currently trade 64 points above fair value. 

Equity indices in the Asia-Pacific region ended Friday on a mixed note with Japan's Nikkei (+1.7%) and South Korea's Kospi (+2.3%) reaching fresh records. Overall sentiment was supported by news that President Trump signed the peace deal with Iran. China launched the third round of its consumer goods trade-in program after a contraction in May Retail Sales. Bank of Japan Deputy Governor Himino will take part in a semiannual monetary policy testimony tomorrow. Australian Securities and Investments Commission warned about the quality of private credit. Central banks in Indonesia and Philippines raised their policy rates.

• In economic data:
  • New Zealand's Q1 GDP 0.8% qtr/qtr, as expected (last 0.5%); 1.5% yr/yr (expected 1.1%; last 1.5%)

---Equity Markets---

• Japan's Nikkei: +1.7%
• Hong Kong's Hang Seng: -1.6%
• China's Shanghai Composite: -0.4%
• India's Sensex: +0.3%
• South Korea's Kospi: +2.3%
• Australia's ASX All Ordinaries: -0.6%

Major European indices trade on a mostly lower note. The Bank of England left its bank rate at 3.75%, which was expected, though two policymakers voted for a rate hike. The Swiss National Bank left its policy rate at 0.00%, which was also expected. Finally, Norges Bank left its policy rate at 4.25%, but hinted at a rate hike later this year. European Central Bank policymaker Kocher said that inflation will stay higher for some time and that the ECB remains ready to act.

• In economic data:
  • Eurozone's April Current Account surplus EUR15.7 bln (expected surplus of EUR18.5 bln; last surplus of EUR14.9 bln). April Construction Output 0.6% m/m (last 1.8%)
  • U.K.'s April three-month Employment Change 100,000 (expected 75,000; last 148,000), April Average Earnings Index + Bonus 4.4% yr/yr (expected 4.0%; last 4.4%). April Unemployment Rate 4.9% (expected 5.0%; last 5.0%), and May Claimant Count Change 31,200 (expected 25,800; last 8,300)

---Equity Markets---

• STOXX Europe 600: -0.3%
• Germany's DAX: +0.4%
• U.K.'s FTSE 100: -0.8%
• France's CAC 40: +0.2%
• Italy's FTSE MIB: +0.1%
• Spain's IBEX 35: -0.1%

The S&P 500 futures currently trade 62 points above fair value.

Just released, initial jobless claims for the week ending June 13 increased by 4,000 to 226,000 (Briefing.com consensus: 226,000) from the upwardly revised prior level of 230,000 (from 229,000).

Continuing claims for the week ending June 6 increased by 24,000 to 1.810 million from the downwardly revised prior level of 1.786 million (from 1.795 million).

The Philadelphia Fed Index expanded to10.3 in June (Briefing.com consensus 10.0), from the prior reading of -0.4.

Equity futures point to a higher opening this morning as the market looks to rebound from yesterday's selloff that followed the June FOMC meeting. The FOMC left rates unchanged, but analysts are referring to the decision as a "hawkish pause" as the dot plot showed nearly half of participants expecting a rate hike by year's end, while inflation estimates increased.

Stocks are supported by retreating oil prices this morning after President Trump officially signed the 60-day memorandum of understanding with Iran, which was touted as immediately reopening the Strait of Hormuz while lifting Iran's naval blockade.

Elsewhere, chipmaker stocks (which were largely resilient to yesterday's selloff) are posting solid gains in the premarket.

The market has several economic data releases on the calendar this morning, including the weekly initial jobless claims report (Briefing.com consensus 226,000).

As a reminder, this will be the stock market's last session of the week, as the market will be closed for the Juneteenth holiday tomorrow.

In corporate news:

• Apple (AAPL 296.54, +0.59, +0.2%) is expected to raise prices due to supply costs, according to The Wall Street Journal.
• Intel (INTC 132.86, +11.76, +9.7%) is sharply higher in the premarket after President Trump confirmed Apple (APPL) will work with Intel to design and build its chips in America.
• Kroger (KR 60.00, -1.82, -2.9%) missed EPS expectations by $0.01, beat revenue expectations, and reaffirmed its FY27 EPS guidance.

Reviewing overnight developments: 

Equity indices in the Asia-Pacific region ended Friday on a mixed note with Japan's Nikkei (+1.7%) and South Korea's Kospi (+2.3%) reaching fresh records. Japan's Nikkei: +1.7%, Hong Kong's Hang Seng: -1.6%, China's Shanghai Composite: -0.4%, India's Sensex: +0.3%, South Korea's Kospi: +2.3%, Australia's ASX All Ordinaries: -0.6%.

In news:

• Overall sentiment was supported by news that President Trump signed the peace deal with Iran.
• China launched the third round of its consumer goods trade-in program after a contraction in May Retail Sales.
• Bank of Japan Deputy Governor Himino will take part in a semiannual monetary policy testimony tomorrow.
• Australian Securities and Investments Commission warned about the quality of private credit.
• Central banks in Indonesia and Philippines raised their policy rates.

In economic data:

• New Zealand's Q1 GDP 0.8% qtr/qtr, as expected (last 0.5%); 1.5% yr/yr (expected 1.1%; last 1.5%)

Major European indices trade on a mostly lower note. STOXX Europe 600: -0.5%, Germany's DAX: flat, U.K.'s FTSE 100: -1.0%, France's CAC 40: -0.1%, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: -0.5%.

In news:

• The Bank of England left its bank rate at 3.75%, which was expected, though two policymakers voted for a rate hike.
• The Swiss National Bank left its policy rate at 0.00%, which was also expected.
• Finally, Norges Bank left its policy rate at 4.25%, but hinted at a rate hike later this year.
• European Central Bank policymaker Kocher said that inflation will stay higher for some time and that the ECB remains ready to act.

In economic data:

• Eurozone's April Current Account surplus EUR15.7 bln (expected surplus of EUR18.5 bln; last surplus of EUR14.9 bln). April Construction Output 0.6% m/m (last 1.8%)
• U.K.'s April three-month Employment Change 100,000 (expected 75,000; last 148,000), April Average Earnings Index + Bonus 4.4% yr/yr (expected 4.0%; last 4.4%). April Unemployment Rate 4.9% (expected 5.0%; last 5.0%), and May Claimant Count Change 31,200 (expected 25,800; last 8,300)

[BRIEFING.COM] After spending the first half of the session drifting sideways, stocks turned lower following the June FOMC meeting, which left the federal funds target range unchanged but was interpreted as a more hawkish-than-expected shift in tone during Fed Chair Kevin Warsh's first meeting at the helm. Weakness was broad, and the S&P 500 (-1.2%), Nasdaq Composite (-1.3%), and DJIA (-1.0%) finished firmly lower, despite the DJIA notching a record intraday high earlier in the session.

The policy statement itself was notably stripped down, with the Committee voting 12-0 to hold the federal funds target range at 3.50%-3.75% and closing with an unambiguous commitment that it "will deliver price stability." The lack of forward guidance, combined with the removal of several longer-standing pieces of language, reinforced the impression of a procedural reset under Fed Chair Warsh.

That tone shift was further amplified in the updated Summary of Economic Projections, which showed inflation running persistently above target and pushed out expectations for policy easing. The median path now implies no rate cuts in 2026, alongside a meaningful upward revision to both headline and core PCE inflation forecasts. Taken together, the statement and projections were read as signaling a higher-for-longer policy stance, prompting a repricing in rates and contributing to the broader risk-off move in equities.

The afternoon sell-off left all eleven S&P 500 sectors in negative territory, though the session's earlier trends were still visible at the sector level. The industrials (-0.1%) and financials (-0.5%) sectors closed with the narrowest losses after their earlier gains pushed the DJIA to a new all-time high.

Several major banking components of the Dow, including Goldman Sachs (GS 1099.14, +8.47, +0.78%) and JPMorgan Chase (JPM 333.46, +2.32, +0.70%), escaped with gains, while Robinhood Markets (HOOD 105.20, +8.49, +8.78%) was one of the top-performing S&P 500 names after announcing it would eliminate 10% of its workforce against a backdrop of positive analyst commentary.

Electrical product names such as GE Vernova (GEV 1048.86, +66.51, +6.77%) and Vertiv (VRT 317.58, +17.98, +6.00%) contributed to the relative outperformance of the industrials sector, while semiconductor stocks also rebounded from yesterday's weakness.

While the afternoon selling pressure eroded the gain of the PHLX Semiconductor Index (+1.4%), it still finished firmly higher as investors bought into yesterday's weakness across semiconductor names.

That helped limit losses in the top-weighted information technology sector (-0.6%), which was weighted down by another weaker showing from the Magnificent Seven cohort today. Microsoft (MSFT 378.91, -14.92, -3.79%) was a laggard in the technology sector, while Meta Platforms (META 567.58, -32.63, -5.44%) weighed on the communication services sector (-3.0%), and Amazon (AMZN 237.50, -8.50, -3.46%) contributed to weakness in the consumer discretionary sector (-2.7%).

All seven Magnificent Seven stocks finished lower, and the Vanguard Mega Cap Growth ETF finished 1.4% lower. In other mega-cap news, SpaceX (SPCX 192.21, -9.59, -4.75%) finished lower for the first time after three consecutive sessions of sharp gains going back to its debut on Friday.

Elsewhere in the consumer discretionary sector, rate-sensitive names such as Carvana (CVNA 62.84, -7.20, -10.28%) and an assortment of homebuilder stocks lagged.

The real estate sector (-2.5%), which is also viewed as rate sensitive, underperformed as well.

Outside the S&P 500, the Russell 2000 (-0.7%) was a relative outperformer, while the S&P Mid Cap 400 (-1.2%) finished with a loss similar to those across the major averages.

Ultimately, the afternoon sell-off overshadowed what had been another constructive session for cyclical sectors, which benefited earlier in the day from stable oil prices as the market remains confident the proposed peace deal between the U.S. and Iran will be signed on Friday, even with President Trump levying threatening renewed military action if a deal is not struck. Instead, investors focused on the prospect of a higher-for-longer policy environment, with a more hawkish outlook and a lack of forward guidance diminishing the market's odds for a rate cut in 2026.

U.S. Treasuries had a mixed outing on Wednesday after sideways morning trade gave way to some post-FOMC volatility that produced losses in 10s and shorter tenors while the long bond outperformed. The 2-year note yield settled up 11 basis points to 4.16%, and the 10-year note yield settled up four basis points to 4.46%. 

• Russell 2000: +17.6% YTD
• S&P Mid Cap 400: +13.4% YTD
• Nasdaq Composite: +12.0% YTD
• S&P 500: +8.4% YTD
• DJIA: +7.1% YTD

Reviewing today's data:

• Weekly MBA Mortgage Applications Index -3.8%; Prior 10.8%
• May Retail Sales 0.9% (Briefing.com consensus 0.5%); Prior was revised to 0.4% from 0.5%, May Retail Sales, ex-auto 0.8% (Briefing.com consensus 0.5%); Prior 0.7%
  • The key takeaway from the report is that it shows real demand. The data are not adjusted for price changes, and retail sales activity in May outpaced the rate of inflation (+0.5%) in May. Moreover, excluding gasoline station sales (+3.4%), retail sales were still up 0.7%.
• April Business Inventories 0.5%; Prior was revised to 1.0% from 1.5%
• May Pending Home Sales 3.8% (Briefing.com consensus 0.9%); Prior was revised to 0.3% from 1.4%