Stock Indexes Slip as Chipmakers Retreat

The S&P 500 Index ($SPX) (SPY) today is down -0.07%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.04%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.75%.  September E-mini S&P futures (ESU26) are down -0.05%, and September E-mini Nasdaq futures (NQU26) are down -0.73%. 

Stock indexes are under pressure 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. 

Stock indexes recovered from their worst levels after the University of Michigan's US Jun consumer sentiment index was revised upward. Also, strength in software stocks is a supportive factor for 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 University of Michigan US Jun consumer sentiment index was revised upward by 0.6 to 49.5, below expectations of 50.0.

The University of Michigan US Jun 1-year inflation expectations were left unrevised at 4.6%, and the Jun 5-10 year inflation expectations were revised downward by -0.1 to 3.3% from 3.4%, right on expectations.

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 -0.85%.  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 +5 ticks today, and the 10-year T-note yield is down -2.4 bp to 4.369%.  T-note prices are finding support today from lower crude oil prices, as WTI crude is down more than -3%.  Also, the downward revision to the University of Michigan’s US Jun long-term inflation expectations was supportive for 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 -0.6 bp to 2.851%.  The 10-year UK gilt yield is up +3.5 bp to 4.735%.

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 5% 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.  Western Digital (WDC) is down more than -8%, and Sandisk (SNDK), Analog Devices (ADI), and Seagate Technology Holdings Plc (STX) are down more than -6%.  Also, Lam Research (LRCX), Marvell Technology (MRVL), Microchip Technology (MCHP), and NXP Semiconductors NV (NXPI) are down more than -5%, and Applied Materials (AMAT), KLA Corp (KLAC), and ARM Holdings Plc (ARM) are down more than -4%.  In addition, Broadcom (AVGO) and Micron Technology (MU) are down more than -3%, and Intel (INTC), Advanced Micro Devices (AMD), ASML Holding NV (ASML), and Texas Instruments (TXN) are down more than -2%.

Software stocks are climbing today, limiting losses in the overall market.  ServiceNow (NOW) is up more than +7% and Workday (WDAY) is up more than +5% to lead gainers in the Nasdaq 100,  Also, Palantir Technologies (PLTR), Intuit (INTU), and Datadog (DDOG) are up more than +4%, and Microsoft (MSFT) is up more than +4% to lead gainers in the Dow Jones Industrials.  In addition, Atlassian Corp (TEAM), Adobe Systems (ADBE), and Salesforce (CRM) are up more than +3%, and Autodesk (ADSK) is up more than +2%. 

ON Semiconductor (ON) is down by more than -22% to lead losers in the S&P 500 after agreeing to an all-stock deal to acquire Synaptics for about $6.2 billion. 

Quantum Corp (QMCO) is down more than -19% after Northland Securities downgraded the stock to market perform from outperform.

Acadia Pharmaceuticals (ACAD) is up more than +12% 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 +8% after announcing it will begin a new stock buyback program of about $500 million.

Nutex Health (NUTX) is up more than +7% after B Riley Securities initiated coverage on the stock with a recommendation of buy and a price target of $290.

Incyte (INCY) is up more than +6% after it said the European Medicines Agency issued a positive opinion recommending the approval of its Opxelura cream for the treatment of moderate atopic dermatitis.

HB Fuller (FUL) is up more than +2% 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).