FOMC remarks take center stage today 06/11/2025

HOT stories for today

Market wrap:

• AI-linked equities rebounded on Wednesday, easing some of the valuation worries that weighed on markets earlier in the week and helping steady the major U.S. indexes. Advanced Micro Devices gained more than 2% after posting stronger-than-expected third-quarter results and upbeat AI-related guidance. The move helped lift peers, with Broadcom rising roughly 2% and Micron Technology jumping 9%, while Oracle also pared back recent losses. Solid ADP private payroll data further supported sentiment and reports that Michael Burry’s recent short bets against AI stocks have already moved against him.
• The AI recovery helped U.S. stocks regain some footing, though the S&P 500, Dow, and Nasdaq remain lower on a week-to-date basis. Investors also took note of a U.S. Supreme Court hearing on former President Donald Trump’s tariff authority, where justices signaled skepticism toward sweeping executive power on trade, an outcome markets primarily view as stabilizing. Not all chip names participated: Qualcomm fell after a sizable tax charge hit earnings. Asia-Pacific markets followed Wall Street higher, with semiconductor and AI-adjacent shares leading regional gains.

Supreme Court Questions Trump Tariff Authority

• U.S. Supreme Court justices on Wednesday signaled broad skepticism toward former President Donald Trump’s sweeping tariffs, questioning whether the administration unlawfully bypassed Congress’s authority over taxation. Both conservative and liberal justices pressed Solicitor General D. John Sauer on the use of the International Emergency Economic Powers Act to justify tariffs on imports from Canada, China, Mexico, and other partners. Justice Sonia Sotomayor noted the tariffs function as taxes on Americans. At the same time, Justice Neil Gorsuch warned the move risked creating a “one-way ratchet” that shifts power from Congress to the executive branch. Lower courts have already ruled that Trump overstepped.
• The tariffs, which range from 10% to 50%, could generate roughly $3 trillion in revenue by 2035 if upheld, according to the Committee for a Responsible Federal Budget. Neal Katyal, arguing for the challengers, said the Constitution grants Congress the taxing power, adding that Trump imposed tariffs even on countries where the U.S. runs trade surpluses, undermining the administration’s stated rationale. Treasury Secretary Scott Bessent attended the hearing and later defended the policy. A ruling is expected later, with the administration pushing for an expedited timeline given potential refund liabilities.

Stocks on the move:
 

• Snap (SNAP) jumped 26% after announcing a $500 million share buyback and issuing strong fourth-quarter revenue guidance. The company also said Perplexity AI will pay $400 million to integrate its search technology into Snapchat.
• Arm Holdings (ARM) rose nearly 3% after topping earnings and revenue estimates. The company reported adjusted earnings of 39 cents a share on $1.14 billion in revenue, ahead of expectations. Its third-quarter outlook also exceeded forecasts.
• Figma (FIG) gained almost 6% after beating third-quarter revenue expectations and lifting its full-year guidance. The firm now expects fiscal-2025 revenue of $1.04 billion to $1.05 billion.
• Applovin (APP) climbed more than 6% following stronger-than-expected quarterly results. The company posted adjusted EBITDA of $1.16 billion and revenue of $1.41 billion, both above consensus, and issued an upbeat fourth-quarter outlook.
• Robinhood (HOOD) slipped about 2% despite reporting better-than-expected third-quarter earnings and revenue. The stock remains up more than 470% over the past year.
• Qualcomm (QCOM) fell roughly 2% after beating fiscal-fourth-quarter estimates on earnings and revenue while issuing guidance that also topped expectations. However, investors focused on a large tax charge that weighed on the headline results.

Watchlist: SNAP, QCOM, FTNT, APP, ARM, FIG, DASH, HOOD, COP

Key Economic Events Today:

EST time

11:00 am: USD FOMC Member Barr, Williams Speaks
12:00 pm: USD FOMC Member Hammack Speaks
03:30 pm: USD FOMC Member Waller Speaks



Earnings

BMO (Before Market Open): Astrazeneca (AZN), ConocoPhillips (COP), Vistra Corp (VST)
AMC (After Market Close: Airbnb (ABNB), Monster Beverage (MNST)


The TEFS Analyst team wishes you a successful day!