Stocks closed out the holiday-shortened week in positive territory. The S&P 500 gained 0.9% in the period for its 11th winning week in twelve, while the Nasdaq Composite (Nasdaq) jumped 2.4%. The Nasdaq has gained in ten of the past twelve weeks. Both indexes are holding neatly above their 50-day moving averages. The S&P 500 has notched several tight weekly closes above that support, generally a bullish sign.
The stock market was closed Friday in observance of the Juneteenth federal holiday.
Wall Street sold off Wednesday after the Federal Reserve’s first meeting with Kevin Warsh as chairman raised worries about monetary policy going forward. Policymakers’ “dot plot” revealed that nine out of 18 Fed officials now see interest rates increasing in 2026.
U.S. equities finished with strong gains on Thursday because of optimism pertaining to the memorandum of understanding signed between the United States and Iran.
Last Thursday, the S&P 500 rose 1.08% to end the day at 7,500.58. Only five of the S&P 500’s 11 sectors rose last Thursday. Technology and consumer discretionary outperformed, while energy was the session’s clear loser, down 1.7%.
Last Thursday, the Nasdaq gained 1.91% to settle at 26,517.93, while the Dow Jones Industrial Average added 72.15 points, or 0.14%, to 51,564.70, advancing 0.7% for the week.
West Texas Intermediate crude oil futures sank $8.28 per barrel, or 9.75%, to $76.60. It was the largest one-week percentage decline since the week ending April 17, per Dow Jones Market Data.
In the bond market, the 10-year Treasury yield eased to 4.45%, holding near its recent lows.
Looking ahead to this week, Micron Technology (MU), FedEx (FDX) and its new spinoff FedEx Freight (FDXF) report earnings. Micron earnings will be a huge report for memory plays, chip-gear suppliers and the broader AI ecosystem. FedEx and FedEx Freight will give a sense of economic activity amid high fuel prices and how it might respond to cooling energy costs.
Teradyne (TER) will be added to the Nasdaq 100 index, effective with the start of trading today, June 22. The stock rallied nearly 6% on June 12, when the news came out, and has kept going higher since.
Market participants are also closely watching the status of the high-level peace talks in Switzerland between the U.S. and Iran. The current uncertainty regarding whether these negotiations can be salvaged is keeping markets on edge, as investors fear a return to the more severe supply disruptions seen earlier this year.
If you click on this link, you will find Market Commentary from Wells Fargo Investment Institute.
The astronomical summer started at 4:24 a.m. Sunday, the instant of the solstice, when the sun beams its most direct light on the Tropic of Cancer. (That’s the one that bisects Mexico.)
In the World Cup, the U.S. clinched 1st place in Group D and secured a spot in the knockout round. This was the first time since 1930 that the U.S. has won consecutive World Cup matches.
