Market Report, 2026-06-25

Stocks held up generally well today as sector rotation continued. While software and hardware stocks that are more consumer-facing posted significant losses, chipmakers experienced exceptional gains after Micron Technology reported phenomenal earnings and provided strong forward guidance. The losses among the other technology companies stemmed from the very same reason: higher memory chip costs. Over the past year, the AI industry's bottlenecks have shifted significantly. In addition to electricity and grid access, high-bandwidth memory (HBM) chips have become another major constraint. To meet the insatiable demand for AI, chipmakers are reallocating production capacity away from traditional memory used in consumer products, creating widespread shortages across the consumer market.

Mixed returns were observed across the major indices. The Dow gained 72 points to 51,921. The NASDAQ declined 0.46%, while the S&P 500 was unchanged at 7,357. Consumer discretionary, communication services, consumer staples, and financials posted losses, while all other sectors advanced, led by industrials and healthcare.

The bond market saw little change. The 5-year U.S. Treasury yield declined by 2 basis points to 4.17%, while the 10-year yield fell by 1 basis point to 4.39%.

Today's economic data release was significant. The Personal Consumption Expenditures (PCE) Price Index showed inflation accelerating as expected, while consumers remained resilient with stronger real spending. This further strengthened expectations for future interest rate hikes, with the federal funds futures market now pricing in a rate increase as early as September.

Consumer sentiment data will be released tomorrow as we wrap up the week. Adams Wealth Advisors will be back to provide further coverage.