Markets Close Out the Quarter Amid Uncertainty 29/06/2026

 


HOT stories for today

Market wrap:

• The Nasdaq Composite fell for a fifth straight session Friday as investors continued to rotate out of major technology shares and into more defensive corners of the market. The tech-heavy benchmark slipped 0.24% to 25,297.62, while the S&P 500 edged down 0.05% to 7,354.02. The Dow Jones Industrial Average lost 44.51 points, or 0.09%, to close at 51,876.11. For the week, the S&P 500 declined nearly 2%, while the Nasdaq dropped 4.6%. The Dow outperformed, gaining 0.6%. Chipmakers remained under pressure after a New York Times report said OpenAI is considering delaying its IPO until next year, citing weaker performance in AI-linked shares following SpaceX’s debut and broader sector volatility.
• Micron Technology fell more than 6%, Advanced Micro Devices lost 2%, and Intel declined more than 3%. The selloff was sharper in Asia, where SoftBank Group, a key OpenAI backer, plunged more than 12%. South Korea’s Kospi also tumbled, closing 5.81% lower. Defensive sectors outperformed, with healthcare, consumer staples, financials and utilities among the session’s stronger groups. Better-than-expected consumer sentiment data and an improved inflation outlook helped limit broader losses. This week, investors will focus on labor market data and developments in the Middle East, after the U.S. and Iran agreed Sunday to pause hostilities and allow commercial vessels to transit the Strait of Hormuz freely following a weekend of military exchanges.

Tech Selloff Deepens as AI Trade Loses Momentum

• Technology stocks suffered their worst week in more than a year as investors rotated out of AI leaders, raising concerns that soaring infrastructure costs could weigh on future earnings. The Nasdaq Composite tumbled 4.6% for the week, its worst weekly performance since March 2025, and was down more than 6% in June. The S&P 500 fell 2% over the same period. The selloff erased nearly $2.8 trillion in market value from the Magnificent Seven this month, underscoring growing investor skepticism over the massive capital commitments required to support the AI boom. Pressure spread across the technology sector, with memory-chip makers, semiconductor companies and hyperscalers all retreating. Micron Technology and Sandisk led declines despite strong long-term demand for high-bandwidth memory, as investors questioned whether elevated pricing and supply shortages can be sustained. Rising memory costs have become a key challenge for AI infrastructure providers, forcing hyperscalers to increase capital spending while squeezing future profit margins.
• Apple also announced price increases on several products this week, citing higher component costs. The latest rotation suggests investors are becoming more selective after years of AI-driven multiple expansion, with the market now focused on earnings visibility, margins and capital efficiency. Software stocks also remained under pressure as concerns persisted that artificial intelligence could disrupt traditional business models. Salesforce, ServiceNow and Palantir extended recent declines. Without participation from the Magnificent Seven, major U.S. indexes have struggled to establish new record highs, reinforcing the sector's outsized influence on overall market performance.

Stocks on the move:

• On Semiconductor (ON), Synaptics (SYNA): Shares moved in opposite directions after On Semiconductor announced an all-stock deal to acquire Synaptics. The nearly $7 billion transaction marks On’s largest acquisition to date and is expected to expand its total addressable market by about $30 billion. On shares fell more than 15%, while Synaptics gained 2.5%.
• Memory stocks: Memory names traded lower as the broader tech selloff continued in premarket trading Friday. Micron (MU) fell more than 4.5% after jumping nearly 16% Thursday following its earnings report. Sandisk (SNDK) also dropped about 4.5%, while Seagate Technology (STX) and Western Digital (WDC) each lost roughly 3.5%.
• Rocket Lab (RKLB): Shares rose 1.5% after NASA selected Rocket Lab to provide launch services for two missions focused on studying the Sun’s energy input into Earth and ice-cloud formation in the atmosphere.
• Apple (AAPL): Shares edged higher, bucking the broader tech selloff, after posting their worst day in more than a year on Thursday. Apple rose 0.5% after sliding more than 6% in its steepest drop since April 2025, following price increases across several devices tied to rising memory and storage costs.

Watchlist: AAPL, MU, SNDK, SPCX, XOM, COIN, RKLB, RGTI

Key Economic Events Today:

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Earnings

AMC (After Market Close): Aerovironment (AVAV), Concentrix (CNXC)



The TEFS Analyst team wishes you a successful day!