Market Report, 2026-06-16

After three consecutive trading days of dramatic gains, the market took a breather on Tuesday, with heavy rotation away from the technology sector. Technology stocks ended the day 2.79% lower, while most other sectors posted moderate gains. The pattern resembles profit-taking, as many of the stocks that declined today are chip stocks that have already enjoyed a record run in 2026.

The market’s newfound favorite, SpaceX, on the other hand, delivered another day of solid returns and closed 61% above its IPO price from Friday, showcasing investors’ enthusiasm for the Elon Musk-led company.

The Dow Jones Industrial Average ended the day 329 points higher at 52,000, benefiting from its relatively low exposure to chip stocks. The NASDAQ, a chip-heavy index, declined 1.15% to 26,376. The S&P 500 ended the day 0.57% lower at 7,511.

The bond market rallied slightly, with the 5-year Treasury yield falling 2 basis points to 4.16% and the 10-year Treasury yield declining 3 basis points to 4.44%. Gold prices held their ground with minimal change.

As the U.S.-Iran conflict appears to be calming down, at least on the surface, there was no major catalyst driving the stock market today. Nevertheless, the bond market is telling a different story, even as oil prices have fallen sharply. The Fed futures market continues to price in a rate hike in December, with the odds increasing further into next year.

Furthermore, real estate-related economic data suggested that builders have slowed construction more than expected as profit margins have come under pressure. Import prices also rose significantly more than anticipated, fueling additional concerns about inflation.

Tomorrow, we will have our first Federal Reserve monetary policy meeting with Kevin Warsh as Chair. It is widely expected that the meeting will not result in a policy change but may provide insight into how Chairman Warsh is likely to steer monetary policy going forward. Adams Wealth Advisors will keep you updated.