A Morning in New York: High Tech in a Period of Turbulence

A daily review and forecast of events in the U.S. stock market by Mikhail Denislamov, Deputy Director of Freedom Capital Markets Research.

The technology sector’s performance will remain the focus of participants in the upcoming session. Asian stock indices have partially stabilized following a sharp correction the previous day. South Korea’s KOSPI is up about 3%, while Japan’s Nikkei is trading slightly higher. Shares of Samsung Electronics and SK Hynix ended the day in positive territory after yesterday’s plunge. At the same time, investors continue to seek an answer to the question of whether the sell-off of shares in companies linked to the AI sector and the semiconductor industry was simply profit-taking following a strong rally or whether it was the first sign of a shift in the fundamental trend.

Micron Technology’s (MU) earnings report will confirm the shortage in the memory chip market. The key focus of the earnings call will be management’s comments on capital expenditures, long-term contracts, and pricing strategy. The medium-term outlook for the company is positive; however, investors should consider the risk of a continued short-term correction if Micron’s results merely confirm optimistic expectations but fail to generate a “wow effect.”

Please note the increased volatility implied by Nasdaq 100 options. The VXN index (the Nasdaq equivalent of the VIX) is trading near its annual high of 32 points. The VXN/VIX ratio is approaching its multi-year high of 1.69. In other words, despite the relative stability of the broader market, the Nasdaq is experiencing very high volatility, and demand for hedging is growing.

Oil prices continue to correct amid easing concerns about supply disruptions from the Middle East and the stabilization of the situation around the Strait of Hormuz. Market participants are also paying close attention to Donald Trump’s accusations that oil companies are artificially inflating gasoline prices; he has instructed the Department of Justice to investigate the matter. A further decline in fuel prices could ease inflationary risks and support the consumer sector, though pressure on oil and gas companies may persist.

The key macroeconomic release this Wednesday will be the new home sales data for May (consensus: +3.2%, April: -6.2%), which will provide insight into the housing market’s ability to stabilize amid high mortgage rates and the Fed’s hawkish stance.

Before the main session opens, Paychex (PAYX) and NovaGold Resources (NG) will report their quarterly results. After the market closes, Micron Technology (MU), Trip.com Group (TCOM), and Worthington Steel (WS) will report their results.

S&P 500 futures are trading near zero. We assess the risk balance for the upcoming session as neutral amid high volatility. An upward reversal in some Asian tech stocks, falling oil prices, and sustained interest in AI-related themes are supporting risk appetite. At the same time, sharp fluctuations in the semiconductor sector and anticipation of Micron’s earnings report could limit gains.

— FedEx (FDX) shares are down about 6% following the release of its 2026 adjusted earnings guidance in the range of $16.9–18.1 per share, with capital expenditures of about $3.9 billion, as well as a share buyback of up to $1 billion. Management is projecting revenue growth of around 11%, but investors are concerned about expectations regarding margins and the performance of operating metrics.

— Cerebras Systems (CBRS) shares are down about 10% following the release of its first-quarter earnings report. Although the company’s revenue rose 94% year-over-year to $193.4 million, the market reacted negatively to the gross margin forecast for the next reporting period, which is in the range of 36–38%, compared to 47% for January–March. Concerns about profitability outweighed the positive impact of rapid business growth and partnerships in the AI sector.

— Worthington Enterprises (WOR) are down about 10% as its revenue and adjusted earnings per share for the most recent reporting quarter came in at $0.97 and $371.5 million, respectively, which fell short of consensus estimates. On the positive side, the report highlights growth in free cash flow, a 5% increase in dividends, and an ongoing share buyback program.

— Nike (NKE) shares rose about 1% following the appointment of David Denton, the former CFO of Pfizer (PFE), as the company’s new CFO.

— Alphabet (GOOGL) shares are up about 0.5% following the announcement that the company will be added to the Dow Jones Industrial Average in place of Verizon (VZ).

Trading on June 23 on U.S. stock markets ended in negative territory. The S&P 500 fell 1.44%, the Nasdaq 100 dropped 3.29%, the Dow Jones declined by a modest 0.09%, and the Russell 2000 lost 0.96%. The main factor weighing on the market was widespread profit-taking in the technology sector as a whole and in the artificial intelligence segment in particular. Semiconductor manufacturers, including memory chip makers, came under the heaviest pressure. Among the “Magnificent Seven,” Nvidia (NVDA: -4.13%) and Tesla (TSLA: -5.79%) suffered the biggest losses.

At the same time, the broader market appeared stable: the balanced S&P 500 significantly outperformed the “classic” benchmark, and the number of stocks that rose slightly exceeded the number that fell. The consumer staples sector (XLP: +1.87%) emerged as the top performer, driven by a shift of capital into defensive assets. Against the backdrop of the aforementioned sell-off in the semiconductor sector, the IT industry (XLK: -4.14%) topped the list of underperformers.

According to S&P Global’s preliminary estimate, the Purchasing Managers’ Index (PMI) for the manufacturing sector rose in June to 55.7 points from 55.1 in May, beating the consensus forecast of 54.2 and reaching a 49-month high. The Services PMI rose to 51.3 points, compared with an average forecast of 51.2 points and a reading of 50.7 the previous month. At the same time, employment components pointed to a further weakening of the labor market, although price indicators remain elevated. The Richmond Fed’s Manufacturing Activity Index came in below market expectations, which was viewed as a negative factor by the investment community. Overall, the released data confirmed the resilience of the U.S. economy but did not alleviate concerns regarding the continuation of the Fed’s hawkish policy.

Investors focused additional attention on interest rate trends and expectations regarding the Federal Reserve’s next moves. Despite “hawkish” comments from Fed officials, Treasury yields fell by 1–3 basis points across the yield curve.

— Edgewell Personal Care (EPC: +15.4%) rejected Yellow Wood Partners' offer to buy the company at $30 per share: the board of directors considered the price too low.

— Korn Ferry (KFY: +5.8%) reported fourth-quarter financial results showing EPS, fee revenue (+7% YoY), and adjusted EBITDA that beat market consensus estimates, and also provided guidance for the next three months that exceeded those estimates.

— Zeta Global (ZETA: +5.6%) has entered into a strategic partnership with Palantir (PLTR: -2.34%) to create a unified data and AI infrastructure for marketing and operational analytics.

— Micron Technology (MU: -13.2%) came under heavy pressure due to a sell-off in shares of Asian memory chip manufacturers: SK Hynix and Samsung Electronics lost more than 12%.

— Although Carnival’s (CCL: -4.9%) quarterly EPS and EBITDA exceeded consensus estimates, its revenue fell short of the market’s average guidance, as did its forecast for the current quarter. Management cited pressure from tensions in the Middle East, logistics costs, and higher non-fuel expenses, although booking volumes remain above last year’s levels.

This article was AI-translated and verified by a human editor