Market Report, 2026-06-23

Global stock markets retreated on Tuesday as investors digested the prospects of interest rate hikes by the Federal Reserve and other major central banks. What began as a selloff in Asia spread across the Pacific as the U.S. stock market opened.

Following last week’s meeting, the Federal Reserve adopted a more hawkish stance, leading to a significant strengthening of the U.S. dollar. This prompted some unwinding of positions in Asia, home to several highly leveraged markets such as South Korea and Taiwan, both of which are key centers of the AI trade.

The South Korean stock market includes two members of the “Memory Triumvirate,” Samsung and SK Hynix. The Taiwanese stock market is home to the global chip manufacturing giant TSMC. As both markets declined, negative sentiment carried over to the U.S. stock market, and many of the rising stars in the AI theme posted losses of nearly 10% in a single session.

The Dow Jones Industrial Average, benefiting from its relatively low exposure to chip stocks, slipped by only 46 points to 51,667. The NASDAQ lost 2.21% to 25,587, while the S&P 500 fell 1.44% to 7,365. The Philadelphia Semiconductor Index dropped 7.87%, highlighting the source of the selloff. Technology, industrials, materials, and consumer discretionary sectors—all of which are central to the AI investment thesis—ended the day in the red, while all other sectors advanced.

While stocks declined, bonds rallied as investors rotated into safer assets. Both the 5-year and 10-year U.S. Treasury yields declined by 1 basis point, to 4.27% and 4.50%, respectively.

Economic data released today showed mixed developments, with survey data indicating faster expansion in manufacturing but slower expansion in services.

Adams Wealth Advisors will continue to monitor the market and provide updates.