Tuesday was a risk-off session with U.S. Indexes lower across the board. The NASDAQ 100 was the clear laggard while the Dow Jones outperformed, reflecting continued pressure on Technology and AI-related names. Gains in IBM buoyed the Dow after receiving an upgrade at JPM and positive commentary from President Trump on quantum computing and IBM stock. The primary driver of the weakness was another round of selling in semiconductor and memory stocks, with both the Semiconductor ETF and Memory ETF posting notable losses as some of 2026’s best-performing trades continued to unwind. The weakness followed a sharp decline in South Korean equities overnight, where both SK Hynix and Samsung came under heavy pressure, contributing to a more cautious tone across the global technology sector. While there was no obvious headline catalyst, the move may reflect profit-taking and positioning adjustments following the sector’s powerful rally earlier this year, particularly after last week’s hawkish FOMC decision pushed Treasury yields higher. Although the major Indices closed lower, sector performance was more mixed. Technology fell by over 3%, while Industrials and Materials also lagged. In contrast, the traditional defensive sectors outperformed, with Consumer Staples, Real Estate, Health Care and Utilities all finishing in positive territory. Crude prices extended their recent decline, with WTI briefly falling below USD 73.00/barrel and Brent dropping beneath USD 77.00/bbl. The continued weakness reflects easing geopolitical concerns following the US-Iran agreement and growing expectations that energy supplies will normalise as the Strait of Hormuz reopens. Treasuries recovered some of Monday’s losses, with lower oil prices helping ease inflation concerns. The move was likely aided by some flight-to-quality demand as equities weakened, although yields remain elevated relative to levels seen prior to last week’s hawkish FOMC decision. In FX, traditional havens outperformed, with the Dollar and the Japanese Yen leading the G10 space. USD/JPY saw a sharp move lower during the European morning in the absence of any clear headline catalyst, although Citi’s FX desk estimated around USD 500 million traded during the move. US data was mixed. The weekly ADP employment measure rose from the prior week, while the S&P Global Flash PMI surveys beat expectations. However, the regional Fed surveys were softer, providing a more mixed picture of underlying activity. Elsewhere, the Treasury sold USD 69 billion of 2-year notes, with the auction stopping through for the first time since January 2026. The recent rise in front-end yields following the hawkish Fed decision appeared to support demand, resulting in a strong overall auction. Gold and Silver prices were lower as the Dollar rallied, which also pressured Bitcoin in the risk-off trade. S&P Global Flash PMIs for June were stronger than expected, with many of the figures hitting multi-month or year-highs. Manufacturing PMI rose to 55.7 (exp. 54.7, prev. 55.1), a 49-month high. Services lifted to 51.3 (exp. 51, prev. 50.7), 4-month peak, leaving the Composite jumping to 52.2 from 51.5. Mfg. output jumped to a 59-month high of 57.7 from May’s 56.6. The survey signalled that current output levels are consistent with the economy struggling to grow much faster than a 1% annualised rate in Q2. Most worrying was the further fall in employment, notably in the manufacturing sector. However, the report adds, while still running at one of the highest rates seen over the past four years, input cost inflation has shown signs of cooling in June, thanks in part to the lower energy prices seen at the tail end of the survey data collection period. Note, the data was collected between 11th and 22nd June. Elsewhere, both Gold and Oil closed lower by 1.5% and 1% respectively.
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For anyone following my Platinum Service it made 380 points yesterday and is now ahead by 8987 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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