Stock Market
The U.S. major indexes closed as follows: Dow Jones declined 0.98% at 51,492.55; S&P 500 fell 1.21% at 7,420.10; NASDAQ dropped 1.34% at 26,021.66. A late-session sell-off in megacaps outweighed early optimism from firmer chip names, leaving all three benchmarks in negative territory by the closing bell.
Chip-linked movers led an otherwise mixed roster of “unusual moves”. Strength in memory and semiconductor plays included “SOXL advanced 3.39% at $233.86; INTC gained 3.46% at $121.10; AVGO rose 4.30% at $392.90; and WDC climbed 4.56% at $712.13.” AI hardware bellwether “NVDA declined 1.33% at $204.65,” while “AMD edged up 1.02% at $512.48.” Recently listed space-tech giant “SPCX fell 4.95% at $191.82,” trimming some of its IPO-week gains. Big-tech laggards included “MSFT declined 3.79% at $378.91; META fell 5.44% at $567.58; and AAPL slipped 1.10% at $295.95.”
Sector cross-currents defined the day. Enthusiasm for memory, networking and AI-infrastructure plays was underscored by “MUU up 4.20% at $924.16” and the leveraged bear fund “SOXS declined 3.67% at $4.46,” highlighting a tilt toward bullish positions in semiconductors. Conversely, consumer-centric giants such as “AMZN fell 3.46% at $237.50” and electric-vehicle heavyweight “TSLA declined 2.05% at $396.38,” illustrating profit-taking in prior market leaders. Overall, the rotation left the aggregate indexes softer despite pockets of tech strength.
Monetary Policy
Federal Reserve Kept Interest Rates at 3.50%-3.75% in Kevin Warsh’s Debut Meeting
The Federal Open Market Committee removed forward-guidance language, marking a communication shift. Markets now weigh higher odds of a hike later this year amid continued inflation concerns.
Fed Chair Warsh Launched Five Task Forces to Overhaul Central-Bank Operations
The groups will study communications, the balance sheet, data usage, productivity and jobs, and inflation frameworks. Warsh said the findings should emerge by year-end, signalling broader reforms ahead.
Other Markets
U.S. 10-year Treasury yield was unchanged at 4.46%. USD/CNH rose 0.03%, at 6.82; USD/HKD was flat 0.00%, at 7.84. U.S. Dollar Index fell 0.01%, at 100.36. WTI crude futures fell 0.89%, at 75.33 USD/bbl; COMEX gold futures declined 2.23%, at 4,283.50 USD/oz.
Top News
U.S. and Iran Leaders Signed a Memorandum to End Hostilities. The agreement, digitally executed by senior officials and witnessed by President Donald Trump, aims to conclude the long-running conflict and reopen critical trade routes. Provisions could swiftly ease tensions in the Strait of Hormuz, potentially stabilizing global energy flows.
U.S. Retail Sales Rose 0.9% in May, Beating Expectations. Commerce Department data showed core retail sales up 0.7%, supported by earlier tax refunds and higher gasoline receipts. Economists caution that spending may slow as refunds fade and price pressures linger.
SpaceX Shares Declined 4%, Cooling After Post-IPO Rally. The company’s valuation briefly surpassed major peers earlier this week, but analysts warn lofty expectations must align with fundamentals. Investors await clarity on profitability amid ambitious growth targets.
Intel Announced Trial Production of Its Advanced 18A-P Chip Process. Management said the node improves speed by 9% or cuts power by 18% versus prior technology. The move seeks to attract external foundry clients and strengthen Intel’s competitive position in AI hardware.
Aehr Test Systems Secured a Follow-On Order for Its FOX-XP Burn-In System. A major data-center optical transceiver supplier will take delivery of the nine-wafer testing platform within six months. The deal supports Aehr’s expansion into high-volume semiconductor quality assurance.
Australian Unions Reached a Wage Deal with INPEX, Ending Ichthys LNG Strikes. More than 400 workers approved the agreement, lifting industrial action that had disrupted production. The settlement removes a threat to roughly 10% of national LNG export capacity.
Elon Musk Outlined a “Terafab” Super Chip Factory Plan at an ASML Conference. The envisioned 2-nanometer facility could require up to $119 billion of investment and extensive EUV lithography purchases, potentially expanding ASML’s long-term order book.
Bernstein Initiated Coverage of GE Vernova with an Outperform Rating. Analysts cite the opportunity for U.S. natural gas to displace global coal, positioning the company for significant growth. The brokerage sees substantial upside as energy transition tailwinds strengthen.
Sources: Reuters, Dow Jones, Tiger Newspress, public market data Disclaimer: This content is for reference only and does not constitute investment advice.
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