Stocks Erase Early Gains as Alphabet and Software Companies Fall

The S&P 500 Index ($SPX) (SPY) today is down -0.40%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.27%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.30%.  September E-mini S&P futures (ESU26) are down -0.38%, and September E-mini Nasdaq futures (NQU26) are down -0.30%. 

Stock indexes gave up an early advance today and are trading mixed. Alphabet is down more than -6% to lead megacap technology stocks lower after announcing that Google DeepMind Vice President Jumper is leaving the company to join Anthropic PBC.  Also, the weakness in software companies is weighing on the broader market.

Stocks initially moved higher today, with the Nasdaq 100 posting a 2.5-week high amid strength in chipmakers and AI-infrastructure stocks.  Stock index futures had weakened in overnight trade as crude oil prices jumped more than +2% when Iran threatened to suspend talks and close the Strait of Hormuz following Israeli attacks against Hezbollah in Lebanon.  Meanwhile, President Trump threatened military action against Iran if Hezbollah militants continue to attack Israel.

However, stock index futures recovered from their worst levels, and crude oil prices gave up their overnight advance and turned lower after Iran said there had been "major progress" in all-night discussions with the US over a peace deal following the interim agreement last week that led to a 60-day ceasefire extension and Iran opening the Strait of Hormuz.  Pakistan and Qatar said in a joint statement today that there was "encouraging progress" in talks and that the US and Iran agreed to establish a "high-level committee" to oversee the talks, as well as working groups dealing with nuclear issues and sanctions on Iran.  There will also be a de-confliction process to help ensure the cessation of military operations in Lebanon.

The British pound is under pressure after Keir Starmer said he would step down as Britain's prime minister, paving the way for Andy Burnham to succeed him.  The markets are awaiting Mr. Burnham’s pick as Chancellor of the Exchequer, on fears that if the new chancellor is not credible, it would raise concerns over deficits and borrowing.

The markets are discounting a 36% chance of a +25 bp rate hike at the next FOMC meeting on July 28-29.

Overseas stock markets are higher today.  The Euro Stoxx 50 is up +0.40%.  China's Shanghai Composite climbed to a 1-month high and closed up +1.78%.  Japan’s Nikkei-225 Stock Average rallied to a new all-time high and closed up +1.55%.

Interest Rates

September 10-year T-notes (ZNU6) today are down -9 ticks, and the 10-year T-note yield is up +3.6 bp to 4.489%.  Sep T-notes fell to a 1-week low today, and the 10-year T-note yield rose to a 1-week high of 4.503%.  T-notes are sliding on negative carryover from last Wednesday when the Fed projected higher interest rates later this year.  Also, supply pressures are undercutting T-notes as the Treasury will auction $211 billion of T-notes and floating-rate notes this week, beginning with Tuesday’s $69 billion auction of 2-year T-notes.

European government bond yields are moving lower today.  The 10-year German bund yield is down -3.9 bp to 2.946%.  The 10-year UK gilt yield fell from a 1-week high of 4.855% and is down -5.2 bp to 4.789%.

ECB President Christine Lagarde said the ECB doesn't need to react more forcefully to the Middle East conflict because inflation is set to return to target over the medium term.

Swaps are discounting a 10% chance of a +25 bp ECB rate hike at its next policy meeting on July 23.

US Stock Movers

Software stocks are falling today, weighing on the broader market.  Palantir Technologies (PLTR) is down more than -4%, and Intuit (INTU) and Oracle (ORCL) are down more than -2%.  Also, Microsoft (MSFT), ServiceNow (NOW), Salesforce (CRM), Atlassian Corp (TEAM), Autodesk (ADSK), Datadog (DDOG), and Workday (WDAY) are down more than -1%.

Defense companies are sliding today after Iran said there had been "major progress" in all-night discussions with the US over a peace deal.  L3Harris Technologies (LHX), Northrop Grumman (NOC), Lockheed Martin (LMT), and Huntington Ingalls Industries (HII) are down more than -2%.  Also, RTX Corp (RTX) is down more than -1%.

Chipmakers and AI-infrastructure stocks are climbing today to lead the broader market higher.  The iShares Semiconductor ETF (SOXX) is up more than +2% to a new record high.  Sandisk (SNDK) is up more than +6% to lead gainers in the Nasdaq 100, and ON Semiconductor (ON) is up more than +6%.  Also, Micron Technology (MU) and Intel (INTC) are up more than +4%, and NXP Semiconductors NV (NXPI), Microchip Technology (MCHP), KLA Corp (KLAC), and Seagate Technology Holdings Plc (STX) are up more than +3%.   In addition, Advanced Micro Devices (AMD) and Texas Instruments (TXN) are up more than +2%, and Applied Materials (AMAT) and Lam Research (LRCX) are up more than +1%.   

Cryptocurrency-exposed stocks are moving higher today, with Bitcoin (^BTCUSD) up more than +2%.  MARA Holdings (MARA) is up more than +9%, and Coinbase Global (COIN), Riot Platforms (RIOT), and Strategy (MSTR) are up more than +1%.

Ligand Pharmaceuticals (LGND) is down more than -8% after announcing its intention to offer $550 million of convertible senior notes due 2031 in a private placement to qualified institutional buyers. 

Alphabet (GOOGL) is down more than -6% to lead losers in the Nasdaq 100 after announcing that Google DeepMind Vice President Jumper is leaving the company to join Anthropic PBC.

Echostar (SATS) is down more than -4% after DISH DBS, a subsidiary of Echostar, said its interest payment on notes due June 1 will be delayed. 

Definium Therapeutics (DFTX) is up more than +49% after meeting its primary endpoint in its Phase 3 Emerge study of its DT120 orally disintegrating tablet for adults with major depressive disorder. 

Apogee Therapeutics (APGE) is up more than +46% after AbbVie agreed to buy the company for $10.9 billion.   

Baldwin Insurance Group (BWIN) is up more than +21% after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $28.

Super Micro Computer (SMCI) is up more than +15% to lead gainers in the S&P 500 after GF Securities Co. Ltd upgraded the stock to buy from hold with a price target of $48.

Fervo Energy (FRVO) is up more than +8% after agreeing with Pacific Northwest National Laboratory and Nvidia to develop a digital twin platform for Enhanced Geothermal Systems technology. 

Acrosa (ACA) is up more than +7% after the Financial Times reported that CRH is nearing a deal to acquire the company. 

Earnings Reports(6/22/2026)

Lifezone Metals Ltd (LZM) and Outdoor Holding Co (POWW).