U.S. Indexes were predominantly firmer on Monday, with the NASDAQ 100 recovering some of the sharp losses seen in the latter half of last week, while the S&P 500 posted modest gains. The Dow closed little changed and the Russell 2000 also finished in positive territory. Market breadth was weak, however, with Technology accounting for most of the upside while the majority of sectors closed lower. Utilities and Real Estate led the declines after outperforming during last week’s risk-off trade. Within Technology, Intel (INTC) was a standout performer after The Information reported that Alphabet (GOOGL) and Nvidia (NVDA) are evaluating the company as a secondary manufacturing partner. Elsewhere, the Memory ETF (DRAM) rebounded around 8%, while the Semiconductor ETF (SOXX) gained roughly 6%, recovering part of last week’s sharp declines. Meanwhile, Apple held its WWDC, where it unveiled the updated Siri AI. The feature will be available later this year, although it will not be available in China due to regulatory issues, seeing the stock close lower. Crude prices settled higher following a fresh exchange of strikes between Israel and Iran over the weekend. The escalation saw oil gap higher at the reopen of trade. However, President Trump later called on both sides to exercise restraint, helping reduce some of the geopolitical risk premium. Reports during the European session suggested the US and Israel had agreed not to strike Iran, while Iran had agreed to suspend military operations against Israel, although Tehran warned it would respond should Israeli attacks on Hezbollah in Lebanon continue. The apparent pause in hostilities helped crude prices retrace much of the overnight rally. Treasury markets largely tracked the move in energy, with yields reaching session highs overnight before gradually paring through the day to finish little changed across much of the curve. The Dollar was also little changed overall, with the New Zealand Dollar outperforming and the Swiss Franc lagging, likely reflecting the improvement in equity sentiment. Attention this week remains on both geopolitics and US inflation data. CPI and PPI will be closely watched for clues on the Fed’s reaction function. While the reports are unlikely to materially alter expectations for the June 17th FOMC meeting, Kevin Warsh’s first as Chair, they could have a greater influence on pricing further out the curve. Markets are currently pricing around a 69% probability of a 25 basis point rate hike by October, with a full hike discounted by year-end. Another hot inflation report could strengthen the case for more officials to align with the hawks in removing the easing bias from the policy statement, particularly following the strong April Payrolls Report. The NY Fed’s Survey of Consumer Expectations for May showed one-year ahead inflation expectations easing to 3.5% from 3.6%, while three- and five-year expectations were unchanged at 3.1% and 3.0%, respectively. Elsewhere, expectations for future credit availability deteriorated, with a smaller share of respondents expecting it will be easier to obtain credit over the next year. Perceptions of current credit access compared to a year ago were largely unchanged. Labour market expectations softened. The perceived probability of finding a job after losing one’s current job fell 2.3ppts to 43.7%, the lowest reading since December 2025 and below the 12-month average of 46.8%. Meanwhile, the perceived probability of losing one’s job over the next year rose 0.5ppts to 15.1%, above the 12-month average of 14.4%. Overall, the survey pointed to a modest deterioration in household sentiment. Short-term inflation expectations eased, while medium- and longer-term inflation expectations remained stable. However, labour market expectations weakened, with respondents becoming less confident about finding work and slightly more concerned about job losses. Expectations surrounding future credit availability, household finances and delinquency rates also deteriorated, while home price growth expectations increased. Elsewhere, Oil closed higher by 1% while Gold was flat.
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For anyone following my Platinum Service it made 340 points yesterday and is now ahead by 1957 points for June after ending May with a loss of 1104 points, having ended April with a gain of 1730 points, after ending March with a massive gain of 9002 points, having closed February with a strong gain of 5482 points after ending January with a gain of 4757 points, having closed December with a gain of 2599 points, after ending the month of November with a gain of 4542 points, after ending October with a nice gain of 5110 points after closing September with a gain of 3774 points while ending August with a gain of 3362 points after closing July with a gain of 3753 points after closing June with a gain of 3530 points, having closed May with a gain of 3606 points, after closing April with a gain of 7685 points after closing March with a gain of 2254 points while closing February with a gain of 4180 points. January ended with a gain of 2768 points while 1997 points were gained in December. October ended with a gain of 2179 points, after closing September with a gain of 4402 points, following a loss of 301 points in August. July gained 1908 points while June saw a gain of 2074 points. The Platinum Service made a record 9619 points in October 2022. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 2300 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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