Markets Overview

Major indices blasted to record highs earlier this month, but the rally is fracturing under macroeconomic pressures. The tech sector has officially entered a correction phase, dragged down by semiconductor and networking names like Micron (MU) and Marvell (MRVL). Macro anxieties are compounding, exemplified by SoftBank (SFTBY) shares plunging 9% intraday after the firm failed to secure a $6 billion margin loan backed by OpenAI, sparking fears of forced liquidations among prime brokers.

Earnings Reports

Oracle (ORCL) reported a strong fiscal Q4 2026 with a massive $638 billion backlog, yet the stock fell post-earnings as investors opted to take profits. Furniture maker Lovesac beat expectations, reporting a GAAP EPS of -$0.76 (beating estimates by $0.29) and revenue of $138.2 million (beating by $1.86M). Additionally, Dollarama and Aurora Cannabis (ACB) released their latest quarterly results to mixed market reactions.

Fed & Economic Data

New data shows U.S. inflation rose to 4.2% in May, putting an end to the bull run's momentum and spooking equities. Consequently, the probability of an FOMC rate hike within the next year is soaring. Meanwhile, the Bank of Canada opted to hold its key interest rate steady at 2.25% in an effort to balance competing economic risks.

Hot Sectors

Technology: The broader tech sector slipped into correction territory as high-beta names faced intense selling pressure. Discount Retail: Dollar General (DG) saw its stock pull back 30% since late February despite soaring sales, reflecting the weight of 4%+ inflation on its core lower-income demographic. Space Economy: Investor attention is heavily concentrated on the space sector ahead of the historic SpaceX debut. Precious Metals: Gold stabilized following the CPI print, while silver entered an "industrial divergence phase" as inflation and growth expectations collided.

Stock News

SpaceX priced its IPO at $135 per share, achieving a staggering $1.77 trillion valuation and cementing its status as one of the largest public offerings in history. Devon Energy (DVN) rallied after providing an updated, optimistic operational forecast for 2026. Conversely, Supermicro (SMCI) suffered a severe drawdown, with retail traders reporting massive losses in just seven days. In crypto, Cardano faced a sell-off after its founder publicly warned that the second half of the year would be "very hard" for the blockchain.

Market Analysis

The dominant theme today is the clash between sticky inflation and stretched tech valuations. A hot 4.2% CPI print has forced markets to price in a renewed rate-hike cycle, triggering a swift rotation out of high-multiple tech stocks. Looking ahead, all eyes will be on the SpaceX IPO debut tomorrow and its immediate impact on space economy peers like Rocket Lab (RKLB). Investors will also closely scrutinize upcoming U.S. PPI data and the European Central Bank (ECB) meeting for further clues on the global rate trajectory.