Stocks Pressured by Weakness in Chipmakers

The S&P 500 Index ($SPX) (SPY) today is down -0.54%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.42%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -1.38%.  September E-mini S&P futures (ESU26) are down -0.51%, and September E-mini Nasdaq futures (NQU26) are down -1.34%. 

Stock indexes are moving lower today, with the S&P 500 and Nasdaq 100 falling to 2-week lows.  The weakness in chipmakers is weighing on the overall market today.  South Korea's Kospi Index fell by more than -5% today after Samsung Electronics and SK Hynix sold off, sparking a global decline in chipmakers.  Stocks also came under pressure today after a New York Times report said ChatGPT owner OpenAI may delay its initial public offering until 2027.  On the positive side, strength in software stocks is limiting the downside in the broader market.

WTI crude oil (CLQ26) is down sharply by more than -3% today, easing inflation expectations, lowering bond yields, and supporting stocks.  Crude oil prices tumbled after tankers transiting the Strait of Hormuz accelerated their transit, adding millions of barrels to the global market.  According to Bloomberg calculations, crude exports from the Persian Gulf have recovered to at least 75% of pre-war levels, with 13 million bbl of crude leaving the region over the three days through Wednesday. 

US May wholesale inventories rose +0.3% m/m, weaker than expectations of +0.4% m/m.  May retail inventories rose +0.6% m/m, stronger than expectations of +0.5% m/m.

The markets are discounting a 30% chance of a +25 bp rate hike at the next FOMC meeting on July 28-29.

Overseas stock markets are lower today.  The Euro Stoxx 50 is down -0.88%.  China's Shanghai Composite fell to a 2-week low and closed down -2.26%.  Japan's Nikkei-225 Stock Average closed down sharply by -4.15%.

Interest Rates

September 10-year T-notes (ZNU6) are up by +2 ticks today, and the 10-year T-note yield is down -0.8 bp to 4.385%.  T-note prices are finding support today from lower crude oil prices, as WTI crude is down more than -3%.  Also, today's stock market weakness has spurred some safe-haven buying of T-notes. 

European government bond yields are mixed today.  The 10-year German bund yield fell to a 3.5-month low of 2.834% and is down -0.2 bp to 2.855%.  The 10-year UK gilt yield is up +5.8 bp to 4.758%.

The ECB's May 1-year CPI expectations eased to 3.5% from 4.0% in April, weaker than expectations of 3.9%.  The May 3-year CPI expectations were unchanged from April at 2.9%, higher than expectations of 2.8%.

Swaps are discounting a 4% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.

US Stock Movers

Chipmakers and AI infrastructure stocks are falling today, pressuring the broader market.  Sandisk (SNDK) is down more than -8% to lead losers in the Nasdaq 100, and Western Digital (WDC) is down more than -7%.  Also, Lam Research (LRCX), Seagate Technology Holdings Plc (STX), Applied Materials (AMAT), Marvell Technology (MRVL), and Micron Technology (MU) are down more than -5%, and ARM Holdings Plc (ARM), Analog Devices (ADI), Intel (INTC), Microchip Technology (MCHP), and KLA Corp (KLAC) are down more than -4%.  In addition, Advanced Micro Devices (AMD), ASML Holding NV (ASML), and Texas Instruments (TXN) are down more than -3%.

Software stocks are climbing today, limiting losses in the overall market.  ServiceNow (NOW) is up more than +6% to lead gainers in the S&P 500, Workday (WDAY) is up more than +4% to lead gainers in the Nasdaq 100, and Salesforce (CRM) is up more than +4% to lead gainers in the Dow Jones Industrials.  Also, Atlassian Corp (TEAM) is up more than +4%, and Palantir Technologies (PLTR), Intuit (INTU), and Adobe Systems (ADBE) are up more than +3%. In addition, Autodesk (ADSK) and Datadog (DDOG) are up more than +2%. 

Quantum Corp (QMCO) is down more than -21% after Northland Securities downgraded the stock to market perform from outperform.

ON Semiconductor (ON) is down by more than -19% to lead losers in the S&P 500 after agreeing to an all-stock deal to acquire Synaptics for about $6.2 billion. 

Acadia Pharmaceuticals (ACAD) is up more than +9% after the European Medicines Agency issued a positive opinion for the company's drug to treat symptoms of Rett syndrome and recommended granting a marketing authorization.

Wise Group Plc (WSE) is up more than +5% after announcing it will begin a new stock buyback program of about $500 million.

Nutex Health (NUTX) is up more than +5% after B Riley Securities initiated coverage on the stock with a recommendation of buy and a price target of $290.

HB Fuller (FUL) is up more than +3% after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $67.

Earnings Reports(6/26/2026)

Apogee Enterprises Inc (APOG) and Anavex Life Sciences Corp (AVXL).